Athena Health Crisis 2 Case Study Solution and Analysis
Intro
Athena Health Crisis 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Athena Health Crisis 2 Case Study Analysis in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Athena Health Crisis 2 Case Study Solution has specific strengths that can be made use of to lower the risks, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Athena Health Crisis 2 Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong financial position permits the company to think about several development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restraints for the company in implementing its development program. The weak points of Athena Health Crisis 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Athena Health Crisis 2 Case Study Solution as well, however the development might be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has posed specific risks to Athena Health Crisis 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Athena Health Crisis 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the annual overall earnings of Athena Health Crisis 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in bring in a large number of customers at a potential rate.
In addition to it, the 2nd chart which shows the yearly development in the Athena Health Crisis 2 Case Study Help total properties, reveals that the business is rather efficient in including value to its properties through its incomes. The development in assets reveals that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis relating to the distribution of total incomes of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Athena Health Crisis 2 Case Study Help business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Athena Health Crisis 2 Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the economic policies connected to the import of books affect the general organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative products etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Athena Health Crisis 2 Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Athena Health Crisis 2 Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Athena Health Crisis 2 Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Athena Health Crisis 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks third and second in different market segments, with a major focus on educational publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Athena Health Crisis 2 Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business require an instant service to avoid the decreasing market growth. Introduction of digital publishing could show to be an immediate solution with low amount of risk for the company. Nevertheless, the company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the customer need, the possible markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a threat to the company's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
