Sun Life Financial Planning For The Future Case Study Solution and Analysis
Intro
Sun Life Financial Planning For The Future Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing details and communication services. Major service segments of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items consist of books, regulars, online media, exhibits, research reports and so on. Sun Life Financial Planning For The Future Case Study Solution has actually become a specialized info provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in general and Sun Life Financial Planning For The Future Case Study Analysis in particular. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 situation? Do the long valuable experience, technical resources and the abilities 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
Sun Life Financial Planning For The Future Case Study Help has certain strengths that can be utilized to lower the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sun Life Financial Planning For The Future Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the company to think about several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase restraints for the company in implementing its development program. The weaknesses of Sun Life Financial Planning For The Future Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, affecting Sun Life Financial Planning For The Future Case Study Help as well, but the development could be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has posed particular dangers to Sun Life Financial Planning For The Future Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Sun Life Financial Planning For The Future Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual total incomes of Sun Life Financial Planning For The Future Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is quite effective in attracting a big number of clients at a possible cost.
Along with it, the second chart which shows the annual growth in the Sun Life Financial Planning For The Future Case Study Analysis total possessions, shows that the business is rather effective in adding value to its properties through its profits. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis relating to the distribution of total revenues of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out 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 influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting Sun Life Financial Planning For The Future Case Study Analysis company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative products and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the Sun Life Financial Planning For The Future Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Sun Life Financial Planning For The Future Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing market. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Sun Life Financial Planning For The Future Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Sun Life Financial Planning For The Future Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market segments, with a major focus on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Sun Life Financial Planning For The Future Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Sun Life Financial Planning For The Future Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-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 together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant option to avoid the declining industry development. For that reason, intro of digital publishing could prove to be an instant option with low quantity of risk for the company. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should first gathers the information associated with the customer demand, the possible markets, the government guidelines and the information associated with the competitors presented in the market. After that, the company must decide one prospective sector for its initial offering. It should gather research study that how it could differentiate its digital publishing from the existing rivals' items. After all the actions above the company must go for the preliminary offering. The company ought to go for the other markets if the initial offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
