Emdeon Inc Case Study Solution and Analysis
Introduction
Emdeon Inc Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing information and interaction services. Significant company sectors of the company include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. Emdeon Inc Case Study Analysis has actually become a specialized information provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Emdeon Inc Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities 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
Emdeon Inc Case Study Help has certain strengths that can be used to reduce the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Emdeon Inc Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the business to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restrictions for the business in executing its advancement program. The weaknesses of Emdeon Inc Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting Emdeon Inc Case Study Analysis as well, however the development might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed particular risks to Emdeon Inc Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Emdeon Inc Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be calculated. The general monetary performance of the business might be analyzed by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Emdeon Inc Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of consumers at a possible rate.
In addition to it, the 2nd graph which reveals the yearly growth in the Emdeon Inc Case Study Help overall assets, reveals that the business is rather efficient in including worth to its assets through its revenues. The development in properties shows that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the circulation of total earnings of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Emdeon Inc Case Study Help business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing might reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Emdeon Inc Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Emdeon Inc Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall 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 large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Emdeon Inc Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Emdeon Inc Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate service to avoid the decreasing market development. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially gathers the data related to the consumer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a risk to the company's long term existence, but the circumstance can be managed by considering a development strategy 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 risk of failure for entrance in the new markets.
