Medfield Pharmaceutical Case Study Solution and Analysis
Introduction
Medfield Pharmaceutical Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Medfield Pharmaceutical Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Medfield Pharmaceutical Case Study Analysis has particular strengths that can be utilized to minimize the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Medfield Pharmaceutical Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Medfield Pharmaceutical Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, affecting Medfield Pharmaceutical Case Study Help as well, however the growth might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has posed specific dangers to Medfield Pharmaceutical Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Medfield Pharmaceutical Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total incomes of Medfield Pharmaceutical Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is quite efficient in attracting a big number of clients at a potential cost.
In addition to it, the 2nd chart which reveals the yearly development in the Medfield Pharmaceutical Case Study Solution total properties, shows that the company is rather efficient in including value to its assets through its revenues. The growth in possessions shows that the overall value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the given data could 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 released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Medfield Pharmaceutical Case Study Solution business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out helpful products etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Medfield Pharmaceutical Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Medfield Pharmaceutical 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 non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Medfield Pharmaceutical Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Medfield Pharmaceutical Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business require an instant option to prevent the declining industry development. Therefore, introduction of digital publishing might show to be an immediate solution with low amount of risk for the business. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company must first gathers the information related to the customer demand, the potential markets, the government guidelines and the information related to the rivals presented in the market. After that, the business must choose one possible sector for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company ought to go for the initial offering. The company should go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a danger to the company's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
