Healthway Medical Corporation Limited Case Study Solution and Analysis
Healthway Medical Corporation Limited Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and Healthway Medical Corporation Limited Case Study Analysis in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Healthway Medical Corporation Limited Case Study Help has particular strengths that can be utilized to lower the risks, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Healthway Medical Corporation Limited Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position permits the business to think about numerous development chances with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restraints for the company in executing its advancement program. The weak points of Healthway Medical Corporation Limited Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, 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 must propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Although, the development of the publishing market is decreasing considering that 2008, affecting Healthway Medical Corporation Limited Case Study Solution also, but the growth could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing market has presented particular risks to Healthway Medical Corporation Limited Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Healthway Medical Corporation Limited Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Due to lack of information, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the annual overall profits of Healthway Medical Corporation Limited Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is quite effective in bring in a large number of consumers at a potential rate.
Together with it, the 2nd graph which reveals the yearly growth in the Healthway Medical Corporation Limited Case Study Analysis overall properties, shows that the company is rather effective in adding worth to its properties through its incomes. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis relating to the circulation of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a potential development to accomplish its future advancement goal.
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces affecting Healthway Medical Corporation Limited Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and technology along with the increase of digital publishing might reduce the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Healthway Medical Corporation Limited Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing market. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the threat of substitution for the market.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Healthway Medical Corporation Limited Case Study Help consist of 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Healthway Medical Corporation Limited Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in different market sections, with a significant focus on educational publications. 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 might wean the market share of Healthway Medical Corporation Limited Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Healthway Medical Corporation Limited Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the business need an instant service to prevent the declining market growth. The company could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should first collects the data related to the consumer need, the potential markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing market is declining since 2008, showing a threat to the company's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.