Athena Health Case Study Solution and Analysis
Athena Health Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and Athena Health Case Study Help in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Athena Health Case Study Analysis has specific strengths that can be used to minimize the dangers, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Athena Health Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position allows the business to consider a number of development opportunities with no fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restraints for the company in executing its advancement program. The weak points of Athena Health Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining since 2008, affecting Athena Health Case Study Solution as well, however the growth could be restored by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned certain risks to Athena Health Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Athena Health Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the consumer base.
The business has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be determined. Nevertheless, the overall financial efficiency of the company might be analyzed by utilizing the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Athena Health Case Study Help is growing and the company is rather efficient in bring in a large number of clients at a potential price.
Together with it, the second graph which shows the yearly development in the Athena Health Case Study Solution overall assets, reveals that the business is quite effective in adding value to its possessions through its profits. The development in assets shows that the overall value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the circulation of total earnings 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 company could move towards other organisation sections with a prospective growth to attain its future advancement objective.
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading useful products etc. China has the greatest population in the world with a high population growth, showing the increasing number of consumers of the Athena Health Case Study Solution. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting Athena Health Case Study Help includes the concerns of environmental 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 should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the documents presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Athena Health Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 prices.
CMP operates in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Athena Health Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 might wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Athena Health Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact 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 brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing market development. The company could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the data associated with the consumer need, the possible markets, the federal government guidelines and the information associated with the rivals provided in the market. After that, the business needs to decide one prospective segment for its initial offering. It must collect research study that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company ought to go for the preliminary offering. The business ought to go for the other markets if the initial offering proves a success. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term presence, however the circumstance can be managed by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.