Harbor City Health Spa Case Study Solution and Analysis
Introduction
Harbor City Health Spa 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 big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Harbor City Health Spa Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 used 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
Harbor City Health Spa Case Study Analysis has certain strengths that can be used to minimize the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Harbor City Health Spa Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position permits the business to consider numerous development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its development program. The weak points of Harbor City Health Spa Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, impacting Harbor City Health Spa Case Study Help too, but the development could be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has positioned certain threats to Harbor City Health Spa Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Harbor City Health Spa Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. However, the overall financial efficiency of the business could be examined by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Harbor City Health Spa Case Study Analysis is growing and the business is quite effective in drawing in a large number of clients at a prospective price.
In addition to it, the second chart which reveals the annual growth in the Harbor City Health Spa Case Study Analysis overall assets, shows that the company is rather effective in adding worth to its possessions through its profits. The growth in assets shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the distribution of total revenues of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the company and the current 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 substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting Harbor City Health Spa Case Study Solution company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out helpful products etc. China has the highest population in the world with a high population development, showing the increasing number of customers of the Harbor City Health Spa Case Study Solution. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Harbor City Health Spa Case Study Solution consists of the issues of environmental communities 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 used while publishing must not be harmful for the environment.
Legal.
Legal policies 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 Five Forces Model).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Harbor City Health Spa Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Harbor City Health Spa Case Study Analysis 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 current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Harbor City Health Spa Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant service to avoid the decreasing industry growth. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially gathers the information connected to the consumer demand, the prospective markets, the government policies and the information connected to the competitors provided in the market. After that, the business needs to decide one prospective segment for its initial offering. It needs to gather research that how it could distinguish its digital publishing from the existing competitors' items. The steps above the business ought to go for the initial offering. If the initial offering proves a success, the business should opt for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, revealing a risk to the business's long term existence, but the situation can be managed by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
