Cincinnati Children Medical Care Center Case Study Solution and Analysis
Intro
Cincinnati Children Medical Care Center 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 provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Cincinnati Children Medical Care Center Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be made use of 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
Cincinnati Children Medical Care Center Case Study Analysis has certain strengths that can be made use of to minimize the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Cincinnati Children Medical Care Center Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong monetary position enables the company to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Cincinnati Children Medical Care Center 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 needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining since 2008, impacting Cincinnati Children Medical Care Center Case Study Help as well, however the development could be revived by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually posed specific risks to Cincinnati Children Medical Care Center Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Cincinnati Children Medical Care Center Case Study Analysis due to the consumer 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 get a strong consumer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be calculated. The total monetary efficiency of the business might be examined by using the charts offered in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Cincinnati Children Medical Care Center Case Study Help is growing and the business is quite efficient in drawing in a large number of consumers at a possible rate.
Along with it, the 2nd chart which shows the annual development in the Cincinnati Children Medical Care Center Case Study Solution overall assets, reveals that the company is rather efficient in including worth to its assets through its incomes. The growth in assets shows that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the distribution of overall earnings of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the general political forces affecting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Cincinnati Children Medical Care Center Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the general business at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Cincinnati Children Medical Care Center Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially 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.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the virtual libraries on particular websites. The changing customer choices towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Cincinnati Children Medical Care Center Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Cincinnati Children Medical Care Center Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Cincinnati Children Medical Care Center Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate solution to prevent the declining market development. The company could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should first gathers the data related to the customer demand, the potential markets, the federal government policies and the information connected to the rivals presented in the market. After that, the company needs to decide one prospective segment for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business must go for the initial offering. The business should go for the other markets if the initial offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a danger to the company's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
