Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Solution and Analysis
Introduction
Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing information and communication services. Major organisation sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports and so on. Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Solution has actually become a specialized details company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable 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
Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Help has particular strengths that can be used to decrease the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the business to think about several advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase constraints for the business in implementing its development program. The weak points of Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Analysis are offered 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 highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Help as well, however the development could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually posed specific hazards to Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals 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 using particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. The general monetary performance of the business might be analyzed by utilizing the charts offered in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Analysis is growing and the company is rather efficient in drawing in a large number of clients at a prospective price.
Together with it, the second chart which reveals the annual growth in the Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Analysis overall possessions, reveals that the business is rather effective in adding worth to its possessions through its earnings. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the circulation of overall profits of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces impacting Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Help business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall company at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry 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. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in various market sections, with a significant concentrate on academic publications. CIP functions as a risk 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 Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Athenahealth Innovating In Response To A Crisis In Healthcare Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company need an instant option to avoid the decreasing industry development. For that reason, introduction of digital publishing might show to be an immediate option with low amount of threat for the company. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the information connected to the consumer demand, the possible markets, the government regulations and the information associated with the rivals presented in the market. After that, the business ought to choose one potential sector for its initial offering. It ought to collect research that how it could distinguish its digital publishing from the existing competitors' products. The steps above the company need to go for the preliminary offering. If the initial offering proves a success, the company ought to go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a danger to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
