Philips Healthcare Marketing The Health Suite Digital Platform Case Study Solution and Analysis
Philips Healthcare Marketing The Health Suite Digital Platform Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Philips Healthcare Marketing The Health Suite Digital Platform Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Philips Healthcare Marketing The Health Suite Digital Platform Case Study Analysis has specific strengths that can be made use of to minimize the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Philips Healthcare Marketing The Health Suite Digital Platform Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong financial position permits the business to think about several advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has certain weak points which might increase constraints for the business in executing its advancement program. The weak points of Philips Healthcare Marketing The Health Suite Digital Platform Case Study Solution are given 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 highly relies over the Chinese markets for its development. It must propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is declining considering that 2008, impacting Philips Healthcare Marketing The Health Suite Digital Platform Case Study Solution too, but the growth could be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing market has actually postured particular dangers to Philips Healthcare Marketing The Health Suite Digital Platform Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Philips Healthcare Marketing The Health Suite Digital Platform Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the customer base.
Due to absence of data, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly total revenues of Philips Healthcare Marketing The Health Suite Digital Platform Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite effective in bring in a large number of customers at a potential rate.
In addition to it, the 2nd graph which reveals the yearly growth in the Philips Healthcare Marketing The Health Suite Digital Platform Case Study Solution total properties, shows that the company is rather effective in including value to its assets through its earnings. The growth in possessions shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis regarding the distribution of total profits of the business. 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 might move towards other organisation sectors with a prospective growth to achieve its future advancement goal.
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, 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 include the population growth, the consumer's choices towards checking out informative materials etc. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Philips Healthcare Marketing The Health Suite Digital Platform Case Study Help. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Philips Healthcare Marketing The Health Suite Digital Platform Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 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 individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Philips Healthcare Marketing The Health Suite Digital Platform Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
CMP operates in a highly competitive industry 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. Significant rivals of Philips Healthcare Marketing The Health Suite Digital Platform Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 might wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Philips Healthcare Marketing The Health Suite Digital Platform Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the business require an immediate option to prevent the declining market growth. The company could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first gathers the information related to the consumer need, the possible markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is declining since 2008, showing a hazard to the company's long term presence, but the situation can be managed by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.