Athena Health Case Study Solution and Analysis
Intro
Athena Health Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually 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 Concerns
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Athena Health Case Study Analysis in specific. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Athena Health Case Study Solution has specific strengths that can be utilized to reduce the risks, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Athena Health Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position enables the company to think about several advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase restrictions for the company in executing its development program. The weak points of Athena Health Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining given that 2008, affecting Athena Health Case Study Solution as well, however the growth might be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has presented particular hazards to Athena Health Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Athena Health Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat 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 products, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. Nevertheless, the general monetary efficiency of the company might be evaluated by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Athena Health Case Study Help is growing and the company is rather effective in drawing in a large number of clients at a potential price.
Together with it, the 2nd graph which reveals the yearly development in the Athena Health Case Study Help overall possessions, reveals that the company is rather effective in adding worth to its properties through its profits. The development in assets reveals that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis relating to the distribution of overall revenues of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the company 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 could have a substantial influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Athena Health Case Study Solution organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Athena Health Case Study Analysis in specific includesthe prices 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. Along with it, the financial policies connected to the import of books impact the overall business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products and so on. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Athena Health Case Study Help. However, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the rise of digital publishing could lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Athena Health Case Study Help consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on certain websites. The altering consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Athena Health Case Study Help consist of the suppliers 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 Buyer.
Negotiating power of purchaser 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 purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Athena Health Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective 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 existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining market development. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information related to the customer need, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a threat to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
