Health Development Corporaion Case Study Solution and Analysis
Intro
Health Development Corporaion Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, Health Development Corporaion Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Health Development Corporaion Case Study Solution has certain strengths that can be used to minimize the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Health Development Corporaion Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong monetary position permits the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase restrictions for the company in executing its development program. The weak points of Health Development Corporaion Case Study Help are provided 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 growth. It must propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Health Development Corporaion Case Study Solution too, however the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has postured certain dangers to Health Development Corporaion Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Health Development Corporaion Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market together with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly total revenues of Health Development Corporaion Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in attracting a large number of consumers at a prospective rate.
In addition to it, the second graph which reveals the yearly growth in the Health Development Corporaion Case Study Help overall possessions, reveals that the company is rather efficient in including worth to its possessions through its revenues. The development in properties reveals that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the given data might be the analysis concerning the distribution of total incomes of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces impacting Health Development Corporaion Case Study Help organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Health Development Corporaion Case Study Solution consists of the issues of ecological communities over the use 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 ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the danger of replacement for the market.
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 competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Health Development Corporaion Case Study Solution 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 Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Health Development Corporaion Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in numerous market segments, with a major focus on educational publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Health Development Corporaion Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an instant service to avoid the decreasing industry development. For that reason, introduction of digital publishing might show to be an instant option with low quantity of risk for the business. The business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the consumer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a risk to the company's long term existence, however the scenario can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
