Healthy Life Group Case Study Solution and Analysis
Healthy Life Group Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing details and interaction services. Significant organisation sectors of the company consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its major products consist of books, regulars, online media, exhibitions, research reports etc. Healthy Life Group Case Study Help has actually ended up being a specialized details service provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and Healthy Life Group Case Study Analysis in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation 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 valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Healthy Life Group Case Study Solution has certain strengths that can be utilized to decrease the risks, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Healthy Life Group Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position permits the company to consider numerous development opportunities with no fear of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weak points of Healthy Life Group Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing market is decreasing given that 2008, affecting Healthy Life Group Case Study Analysis too, but the growth could be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company could likewise introduce 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 dependence over Chinese markets by using its vast financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed specific threats to Healthy Life Group Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Healthy Life Group Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market together with existence of high competitors increases the risk of losing the client base.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual total earnings of Healthy Life Group Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is quite efficient in drawing in a large number of customers at a potential rate.
Along with it, the second graph which reveals the annual development in the Healthy Life Group Case Study Analysis total properties, shows that the business is quite effective in including worth to its assets through its incomes. The development in properties shows that the overall worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the circulation of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a potential growth to attain its future development goal.
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Healthy Life Group Case Study Analysis 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 basic and the Healthy Life Group Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books impact the overall business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful materials etc. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Healthy Life Group Case Study Help. However, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Healthy Life Group Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal regulations 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 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the files presented in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Healthy Life Group Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Healthy Life Group Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market segments, with a significant concentrate on educational publications. CIP functions 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 marketplace share of Healthy Life Group Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Healthy Life Group Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an immediate service to prevent the decreasing industry growth. Intro of digital publishing could prove to be an instant service with low amount of danger for the company. The company might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company needs to first collects the information related to the consumer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing since 2008, showing a threat to the business's long term existence, however the situation can be managed by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.