Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Solution and Analysis
Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help has specific strengths that can be made use of to minimize the hazards, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the business to think about several development opportunities with no worry of raising fund externally.
Along with the strengths, the business has particular weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways 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 strategies to prevent its dependence over the Chinese markets to achieve long term development.
The growth of the publishing market is decreasing because 2008, impacting Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help as well, however the growth might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has posed particular dangers to Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the danger of losing the client base.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be calculated. The total monetary performance of the company could be analyzed by using the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help is growing and the company is rather effective in bring in a a great deal of clients at a possible price.
Along with it, the 2nd chart which shows the annual growth in the Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Solution total possessions, reveals that the business is quite efficient in adding worth to its assets through its profits. The development in properties shows that the overall worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis concerning the distribution of overall earnings of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a potential development to attain its future development goal.
PESTEL analysis might be carried out to find out the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces affecting Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies connected to the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful products and so on. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Solution 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 needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market 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.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market sections, with a significant focus on instructional publications. CIP serves as a hazard 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 Danaka Corporation Healthcare Solutions Portfolio Management 2 Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the decreasing industry growth. Introduction of digital publishing might prove to be an instant option with low quantity of risk for the business. The business might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially gathers the information related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining because 2008, showing a hazard to the business's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.