Shriners Hospitals For Children Case Study Solution and Analysis
Intro
Shriners Hospitals For Children Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Shriners Hospitals For Children Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Shriners Hospitals For Children Case Study Help has specific strengths that can be utilized to reduce the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Shriners Hospitals For Children Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position allows the business to think about several development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase constraints for the business in executing its development program. The weaknesses of Shriners Hospitals For Children Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Shriners Hospitals For Children Case Study Help as well, however the development could be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually positioned certain dangers to Shriners Hospitals For Children Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Shriners Hospitals For Children Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be computed. However, the total financial performance of the business could be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Shriners Hospitals For Children Case Study Help is growing and the business is rather efficient in attracting a large number of customers at a potential rate.
In addition to it, the second chart which shows the annual development in the Shriners Hospitals For Children Case Study Solution overall properties, reveals that the business is rather effective in including value to its properties through its profits. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis regarding the distribution of overall revenues of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting Shriners Hospitals For Children Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful products etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Shriners Hospitals For Children Case Study Help. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Shriners Hospitals For Children Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized 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 policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers 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 likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Shriners Hospitals For Children Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Shriners Hospitals For Children Case Study Solution include;.
• 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 might wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival 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 instant option to prevent the declining industry growth. Therefore, introduction of digital publishing could show to be an immediate solution with low quantity of threat for the business. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to first gathers the data connected to the customer demand, the possible markets, the government policies and the data connected to the rivals presented in the market. After that, the company ought to decide one potential sector for its preliminary offering. It needs to gather research that how it might distinguish its digital publishing from the existing rivals' products. After all the steps above the business need to go for the initial offering. The business ought to go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term presence, however the circumstance can be managed by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
