Medical Marijuana Case Study Solution and Analysis
Introduction
Medical Marijuana Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing information and interaction services. Significant company sections of the company consist of; books, regulars, consultancy and distribution. The company has a huge item portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. Medical Marijuana Case Study Solution has ended up being a specialized info company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Medical Marijuana Case Study Solution has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several 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 abilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Medical Marijuana Case Study Analysis has specific strengths that can be used to reduce the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Medical Marijuana Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the company to think about numerous advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase restrictions for the business in executing its development program. The weak points of Medical Marijuana Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting Medical Marijuana Case Study Analysis as well, but the development could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured particular dangers to Medical Marijuana Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Medical Marijuana Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP might not be computed. However, the total monetary performance of the company could be evaluated by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Medical Marijuana Case Study Help is growing and the company is rather efficient in attracting a a great deal of customers at a possible cost.
Together with it, the second graph which reveals the yearly growth in the Medical Marijuana Case Study Solution overall possessions, shows that the business is quite efficient in including worth to its assets through its profits. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis regarding the circulation of overall earnings of the company. 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 could move towards other business sectors with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect 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 Party of China. It might be stated that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Medical Marijuana Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together 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 customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Medical Marijuana Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Medical Marijuana Case Study Analysis include the providers of the paper for publishing files. 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.
Bargaining 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 needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Medical Marijuana Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in numerous market sectors, with a significant focus on educational publications. CIP serves as a danger 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 marketplace share of Medical Marijuana Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate service to avoid the declining market growth. Therefore, intro of digital publishing could prove to be an immediate option with low amount of risk for the business. Nevertheless, the company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially gathers the information associated with the consumer demand, the prospective markets, the federal government guidelines and the data related to the competitors provided in the market. After that, the company needs to decide one prospective section for its initial offering. It should gather research study that how it could separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the preliminary offering. The business must go for the other markets if the initial offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
