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Healthway Medical Corporation Limited Case Analysis

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Healthway Medical Corporation Limited Case Study Solution and Analysis


Intro

Healthway Medical Corporation Limited Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information company and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.

Critical Concerns

CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and Healthway Medical Corporation Limited Case Study Solution in specific. These factors include;

• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
Executive Summary
The change of the macro markets have raised a number of questions 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 capabilities of the company could be utilized 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


Healthway Medical Corporation Limited Case Study Help has certain strengths that can be utilized to decrease the dangers, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;

• The long term experience of Healthway Medical Corporation Limited Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong financial position permits the business to consider a number of advancement chances without any worry of raising fund externally.

Weak points

In addition to the strengths, the business has specific weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Healthway Medical Corporation Limited Case Study Solution are provided as follows;

• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing market is declining considering that 2008, affecting Healthway Medical Corporation Limited Case Study Help as well, but the development might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;

• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.

Risks

The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain hazards to Healthway Medical Corporation Limited Case Study Solution consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Healthway Medical Corporation Limited Case Study Help due to the customer shift towards virtual libraries.
• The existence 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 gain a strong consumer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the risk of losing the consumer base.

Financial Analysis.
Swot Analysis
The business has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP might not be calculated. Nevertheless, the total financial performance of the company could be examined by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Healthway Medical Corporation Limited Case Study Help is growing and the business is rather efficient in bring in a a great deal of customers at a potential cost.

In addition to it, the second graph which reveals the yearly growth in the Healthway Medical Corporation Limited Case Study Help total possessions, shows that the business is quite effective in including value to its possessions through its revenues. The development in properties reveals that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).

Another financial analysis of the business using the offered data might be the analysis relating to the distribution of total revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a prospective development to attain its future development goal.

PESTEL Analysis

PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting Healthway Medical Corporation Limited Case Study Help organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.

Affordable.

Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population development, the consumer's preferences towards reading useful materials and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Healthway Medical Corporation Limited Case Study Solution. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.

Technological.

Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting Healthway Medical Corporation Limited Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.

Legal.

Legal policies 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 first by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.

Industry Analysis (Porter's Five Forces Model).

Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.

Danger of New Entrants.

Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.

Danger of Substitution.

Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the danger of replacement for the industry.

Competitive Competition.

Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant providers of the Healthway Medical Corporation Limited Case Study Help include the suppliers of the paper for publishing 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 Purchaser.

Bargaining 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 market saturation, the purchasers requires high quality files at competitive rates.

Rivals Analysis.

CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Healthway Medical Corporation Limited Case Study Analysis consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts as a hazard for CMP as it could 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).

Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.

Suggestions

As the choices are shifting towards digital publishing and the business require an immediate option to avoid the declining industry development. The company might likewise consider the growth program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its item portfolio, the business ought to initially gathers the data connected to the consumer need, the possible markets, the federal government regulations and the data associated with the rivals provided in the market. After that, the company ought to decide one prospective segment for its preliminary offering. It ought to collect research study that how it might differentiate its digital publishing from the existing rivals' products. The actions above the business should go for the preliminary offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the business would have the ability to implement its digital publishing program.

Conclusion

Although, the growth of the publishing industry is declining because 2008, revealing a risk to the business's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.

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