Comprehensive Health Plan Case Study Solution and Analysis
Comprehensive Health Plan Case Study Analysis is the largest 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 thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Comprehensive Health Plan Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 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?
Comprehensive Health Plan Case Study Help has certain strengths that can be used to decrease the threats, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Comprehensive Health Plan Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position permits the business to consider several development chances with no fear of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase constraints for the company in implementing its development program. The weak points of Comprehensive Health Plan Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to attain long term development.
The development of the publishing market is declining given that 2008, impacting Comprehensive Health Plan Case Study Help as well, however the development might be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has positioned specific hazards to Comprehensive Health Plan Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Comprehensive Health Plan Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competition increases the threat of losing the consumer base.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. Nevertheless, the general monetary efficiency of the company could be examined by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Comprehensive Health Plan Case Study Analysis is growing and the business is rather efficient in attracting a large number of consumers at a potential rate.
Together with it, the 2nd graph which shows the yearly development in the Comprehensive Health Plan Case Study Help overall assets, reveals that the company is quite efficient in including worth to its assets through its profits. The growth in properties shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis regarding the circulation of total revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a prospective development to attain its future development objective.
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out informative products etc. China has the greatest population on the planet with a high population growth, showing the increasing number of customers of the Comprehensive Health Plan Case Study Help. However, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Comprehensive Health Plan Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the risk of substitution for the market.
Competitive competition in the publishing industry is high. The presence of large number 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 likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Comprehensive Health Plan Case Study Solution include the suppliers of the paper for publishing files. 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 Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Comprehensive Health Plan Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in different market sections, with a major focus on academic publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Comprehensive Health Plan Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise among the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing market growth. Introduction of digital publishing could prove to be an immediate service with low amount of threat for the business. The company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should initially collects the data related to the consumer need, the prospective markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the company needs to choose one prospective sector for its initial offering. It ought to gather research that how it could distinguish its digital publishing from the existing competitors' items. After all the steps above the company need to opt for the initial offering. The company should go for the other markets if the initial offering proves a success. In this method the business would have the ability to execute its digital publishing program.
The growth of the publishing market is decreasing because 2008, showing a hazard to the business's long term presence, however the situation can be controlled by thinking about 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 danger of failure for entrance in the new markets.