Health Insurance To The Base Of The Pyramid Case Study Solution and Analysis
Health Insurance To The Base Of The Pyramid Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing information and communication services. Major service sectors of the business include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant products include books, periodicals, online media, exhibitions, research study reports etc. Health Insurance To The Base Of The Pyramid Case Study Help has become a specialized information service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing market in general and Health Insurance To The Base Of The Pyramid Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement 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 company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Health Insurance To The Base Of The Pyramid Case Study Analysis has specific strengths that can be made use of to minimize the dangers, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Health Insurance To The Base Of The Pyramid Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the business to consider a number of advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has certain weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Health Insurance To The Base Of The Pyramid Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing because 2008, impacting Health Insurance To The Base Of The Pyramid Case Study Help also, however the growth might be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition 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 using its large funds.
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed particular risks to Health Insurance To The Base Of The Pyramid Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Health Insurance To The Base Of The Pyramid Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competition increases the risk of losing the customer base.
Due to lack of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total profits of Health Insurance To The Base Of The Pyramid Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is quite effective in bring in a big number of consumers at a potential cost.
Together with it, the 2nd graph which reveals the annual growth in the Health Insurance To The Base Of The Pyramid Case Study Solution total possessions, reveals that the company is quite efficient in including value to its properties through its incomes. The development in possessions shows that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided information might be the analysis concerning the circulation of overall incomes of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a prospective development to attain its future development objective.
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Health Insurance To The Base Of The Pyramid Case Study Analysis includes the issues of environmental 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 regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the virtual libraries on particular websites. The changing customer choices towards digital learning increase the threat of alternative for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Health Insurance To The Base Of The Pyramid Case Study Solution include the providers 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 a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Health Insurance To The Base Of The Pyramid Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant service to avoid the decreasing industry growth. Introduction of digital publishing could show to be an immediate service with low amount of risk for the business. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially collects the information related to the consumer demand, the prospective markets, the government guidelines and the data 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 way the business would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing considering that 2008, showing a hazard to the company's long term presence, however the situation can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.