Cvs Health Company Case Study Solution and Analysis
Cvs Health Company Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing details and communication services. Major service sectors of the business consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports etc. Cvs Health Company Case Study Help has become a specialized information service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Cvs Health Company Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Cvs Health Company Case Study Help has certain strengths that can be used to lower the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Cvs Health Company Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position allows the company to consider numerous development chances without any worry of raising fund externally.
Together with the strengths, the business has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Cvs Health Company Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
The development of the publishing industry is decreasing since 2008, affecting Cvs Health Company Case Study Help as well, however the growth might be restored by availing certain chances presented in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has presented certain risks to Cvs Health Company Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Cvs Health Company Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to presence of high competition increases the risk of losing the consumer base.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be calculated. The overall financial efficiency of the business might be examined by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Cvs Health Company Case Study Analysis is growing and the business is rather efficient in drawing in a a great deal of clients at a potential price.
In addition to it, the second graph which reveals the yearly development in the Cvs Health Company Case Study Solution total assets, reveals that the business is quite efficient in adding value to its assets through its incomes. The development in properties shows that the total value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the circulation of overall earnings of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a possible development to achieve its future development objective.
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Cvs Health Company Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Cvs Health Company Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on particular sites. The altering customer preferences towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Cvs Health Company Case Study Analysis include the providers 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 supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
CMP runs in a highly competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Cvs Health Company 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 could 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Cvs Health Company Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant option to prevent the declining industry growth. For that reason, introduction of digital publishing might prove to be an immediate option with low amount of risk for the company. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should initially collects the data related to the consumer need, the potential markets, the federal government guidelines and the data related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining because 2008, showing a hazard to the company's long term existence, but the scenario can be controlled by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.