Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Solution and Analysis
Introduction
Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing details and communication services. Major company segments of the company consist of; books, regulars, consultancy and distribution. The company has a huge product portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports and so on. Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Help has ended up being a specialized info company and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Solution in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change 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 valuable experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Help has certain strengths that can be made use of to reduce the risks, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Solution in the publishing industry i.e. 60 years enables the business 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 advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position enables the company to think about several development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase constraints for the business in executing its development program. The weak points of Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining because 2008, impacting Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Help as well, however the growth could be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually presented specific threats to Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual total revenues of Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Help during the period 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 quite efficient in attracting a big number of clients at a potential price.
In addition to it, the second graph which reveals the yearly growth in the Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Help total properties, reveals that the business is rather efficient in adding value to its assets through its revenues. The growth in assets reveals that the total value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the distribution of total revenues of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces affecting Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Solution service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market 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. Major competitors of Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Horizon Blue Cross Blue Shield Of New Jersey Managing In The Shadow Of Health Care Reform Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an instant option to avoid the declining industry development. Introduction of digital publishing could show to be an instant service with low amount of risk for the business. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first gathers the information related to the customer need, the possible markets, the government guidelines and the data 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 method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, revealing a threat to the company's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
