Athena Health Crisis Case Study Solution and Analysis
Athena Health Crisis Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing info and communication services. Major company sectors of the business consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. Athena Health Crisis Case Study Analysis has ended up being a specialized info service provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and Athena Health Crisis Case Study Help in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Athena Health Crisis Case Study Analysis has certain strengths that can be utilized to reduce the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Athena Health Crisis Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position enables the company to think about several advancement chances with no worry of raising fund externally.
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of Athena Health Crisis Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
The growth of the publishing industry is declining since 2008, impacting Athena Health Crisis Case Study Solution as well, however the development might be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has postured certain hazards to Athena Health Crisis Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Athena Health Crisis Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market along with presence of high competitors increases the risk of losing the client base.
The company has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be determined. The total monetary efficiency of the business could be examined by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Athena Health Crisis Case Study Solution is growing and the company is quite effective in bring in a a great deal of clients at a potential cost.
Together with it, the 2nd graph which reveals the yearly growth in the Athena Health Crisis Case Study Analysis total properties, shows that the company is rather effective in including worth to its possessions through its profits. The development in assets shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided information might be the analysis concerning the distribution of total profits of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a possible growth to attain its future development objective.
PESTEL analysis could be performed to find out the numerous 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).
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out useful products and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of customers of the Athena Health Crisis Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Athena Health Crisis Case Study Help consists of the concerns of ecological 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 should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Athena Health Crisis Case Study Solution consist of the suppliers 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 Buyer.
Bargaining 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 marketplace saturation, the purchasers needs high quality files at competitive rates.
CMP operates in a highly competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Athena Health Crisis Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Athena Health Crisis Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company require an instant service to prevent the declining market growth. The company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company ought to first collects the information associated with the customer demand, the potential markets, the federal government policies and the data connected to the competitors presented in the market. After that, the company must decide one possible sector for its preliminary offering. It needs to gather research study that how it could distinguish its digital publishing from the existing competitors' items. The steps above the business should go for the preliminary offering. The business ought to go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing given that 2008, revealing a threat to the business's long term existence, but the situation can be controlled by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.