Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Solution and Analysis
Intro
Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Analysis in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
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 valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Help has specific strengths that can be utilized to minimize the risks, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position allows the business to think about several development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its development program. The weak points of Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, affecting Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Solution as well, but the growth might be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain risks to Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry in addition to existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual overall earnings of Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Analysis 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 company is rather effective in drawing in a large number of customers at a potential rate.
In addition to it, the second chart which reveals the annual growth in the Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Help total possessions, shows that the business is quite effective in including value to its assets through its earnings. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the circulation of total revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand 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 ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Analysis includes the issues of ecological 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 should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal 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 likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Key State Blue Cross And Blue Shield Plan Strategy For Winning In The Market Through Customer Focused Service Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an instant solution to prevent the decreasing industry growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of danger for the company. However, the business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should first collects the data associated with the consumer demand, the potential markets, the federal government policies and the information related to the rivals provided in the market. After that, the business must choose one possible segment for its initial offering. It should gather research that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a threat to the business's long term existence, however the circumstance can be managed by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
