Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution and Analysis
Introduction
Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing info and interaction services. Significant service segments of the business consist of; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution has ended up being a specialized information company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Analysis has specific strengths that can be used to decrease the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position permits the business to consider a number of development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, affecting Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution too, however the growth might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has actually postured certain risks to Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution due to the consumer shift towards virtual 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 competitors can get a strong customer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual total incomes of Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in drawing in a big number of consumers at a potential rate.
Along with it, the 2nd graph which reveals the yearly growth in the Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help total assets, reveals that the business is rather efficient in adding worth to its assets through its revenues. The development in assets reveals that the overall value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis regarding the circulation of total earnings of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the general political forces affecting Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the total business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help includes the issues of ecological 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sections, with a major focus on instructional publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Sun Life Financial A Potential Indian Life Insurance Joint Venture Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger 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 company sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the declining market growth. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to initially collects the information related to the customer need, the prospective markets, the federal government policies and the information related to the competitors provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a risk to the company's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
