Athena Health Crisis Case Study Solution and Analysis
Intro
Athena Health Crisis Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Athena Health Crisis Case Study Analysis in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be made use of 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 Case Study Help has certain strengths that can be used to minimize the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Athena Health Crisis Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the company to think about a number of advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Athena Health Crisis Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Athena Health Crisis Case Study Solution as well, however the development could be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific hazards to Athena Health Crisis Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Athena Health Crisis Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall revenues of Athena Health Crisis Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is quite effective in bring in a large number of clients at a possible price.
Along with it, the second graph which shows the annual growth in the Athena Health Crisis Case Study Solution overall assets, shows that the company is rather effective in including worth to its assets through its profits. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered information could be the analysis regarding the circulation of overall incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting Athena Health Crisis Case Study Analysis company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Athena Health Crisis Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the total service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Athena Health Crisis Case Study Analysis. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Athena Health Crisis Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files provided in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Athena Health Crisis Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Athena Health Crisis Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in numerous market segments, with a significant concentrate on instructional publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Athena Health Crisis Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Athena Health Crisis Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate option to prevent the decreasing market growth. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should initially collects the data associated with the customer need, the possible markets, the federal government policies and the information connected to the rivals provided in the market. After that, the company must choose one potential sector for its preliminary offering. It ought to collect research that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the business must choose the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term existence, but the scenario can be controlled by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
