Healing Touch Case Study Solution and Analysis
Intro
Healing Touch Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Healing Touch Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Healing Touch Case Study Analysis has certain strengths that can be made use of to lower the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Healing Touch Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position enables the business to consider several advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Healing Touch Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional 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 specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Healing Touch Case Study Help as well, but the development could be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using 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 minimize its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has posed specific risks to Healing Touch Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Healing Touch Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. The general financial performance of the business could be analyzed by utilizing the charts given in the case Appendices. It could 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 need of the items of Healing Touch Case Study Solution is growing and the business is rather effective in bring in a a great deal of clients at a potential rate.
Along with it, the second graph which shows the annual development in the Healing Touch Case Study Analysis total possessions, reveals that the business is rather effective in including value to its possessions through its incomes. The development in possessions shows that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis regarding the distribution of total earnings of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful products etc. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Healing Touch Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Healing Touch Case Study Analysis includes the issues of ecological neighborhoods over the use 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal 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 also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Healing Touch Case Study Help include the suppliers of the paper for releasing documents. 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.
Haggling power of purchaser 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 purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Healing Touch Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Healing Touch Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate option to avoid the declining market development. The business could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first collects the data related to the consumer need, the possible markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a hazard to the business's long term presence, however the situation can be controlled by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
