Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Solution and Analysis
Introduction
Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Help has certain strengths that can be utilized to reduce the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the business to consider several development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Solution as well, however the development could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain risks to Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. However, the total financial performance of the company could be analyzed by utilizing the graphs given up the case Appendices. It might be analyzed from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Help is growing and the company is rather effective in drawing in a large number of clients at a potential price.
In addition to it, the 2nd graph which shows the yearly development in the Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Solution overall assets, reveals that the business is rather efficient in adding value to its assets through its profits. The development in properties reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis relating to the circulation of overall revenues of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Reinsurance Negotiation Confidential Information For Jlt Insurance Company Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company 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 business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business need an instant option to avoid the declining market growth. For that reason, intro of digital publishing could show to be an instant solution with low amount of risk for the company. Nevertheless, the business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the data related to the consumer demand, the prospective markets, the federal government regulations and the information connected to the competitors presented in the market. After that, the company needs to choose one potential sector for its initial offering. It ought to gather research study that how it might separate its digital publishing from the existing competitors' products. After all the actions above the company ought to go for the initial offering. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a risk to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
