Dental Associates Of Northern Virginia A Case Study Solution and Analysis
Introduction
Dental Associates Of Northern Virginia A Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and Dental Associates Of Northern Virginia A Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Dental Associates Of Northern Virginia A Case Study Analysis has certain strengths that can be made use of to lower the threats, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Dental Associates Of Northern Virginia A Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restrictions for the business in implementing its advancement program. The weak points of Dental Associates Of Northern Virginia A Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Dental Associates Of Northern Virginia A Case Study Help as well, however the development could be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has presented particular threats to Dental Associates Of Northern Virginia A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Dental Associates Of Northern Virginia A Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. Nevertheless, the general financial performance of the company could be analyzed by utilizing the charts given up 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 Dental Associates Of Northern Virginia A Case Study Help is growing and the business is rather effective in drawing in a a great deal of customers at a possible price.
Together with it, the second graph which shows the annual development in the Dental Associates Of Northern Virginia A Case Study Analysis total possessions, reveals that the company is quite efficient in including worth to its properties through its earnings. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information might be the analysis concerning the distribution of overall revenues of the company. Major part of the earnings 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 service sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out useful materials and so on. China has the highest population on the planet with a high population development, showing the increasing variety of consumers of the Dental Associates Of Northern Virginia A Case Study Help. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Dental Associates Of Northern Virginia A Case Study Solution consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the digital libraries on particular websites. The altering customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence 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. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Dental Associates Of Northern Virginia A Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Dental Associates Of Northern Virginia A Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on academic publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Dental Associates Of Northern Virginia A Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Dental Associates Of Northern Virginia A Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the declining industry growth. For that reason, intro of digital publishing could prove to be an instant service with low quantity of threat for the business. Nevertheless, the business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data related to the consumer need, the possible markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a danger to the business's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company 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 entryway in the new markets.
