Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Solution and Analysis
Intro
Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing info and communication services. Significant organisation sectors of the business include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its major items consist of books, regulars, online media, exhibits, research study reports and so on. Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Help has become a specialized info service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Solution has certain strengths that can be used to minimize the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong financial position allows the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its advancement program. The weaknesses of Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Solution too, but the development might be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned particular risks to Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be determined. The overall monetary performance of the company could be examined by utilizing the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Help is growing and the company is rather effective in bring in a large number of clients at a possible rate.
Together with it, the second chart which reveals the yearly development in the Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Analysis overall properties, reveals that the company is rather efficient in adding worth to its properties through its incomes. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis regarding the distribution of overall profits of the company. 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 could move towards other organisation segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might 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 supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Sun Life Financial Potential Indian Life Insurance Joint Venture 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 required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing market. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the digital libraries on particular websites. The altering customer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number 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 Potential Indian Life Insurance Joint Venture Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 present market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Sun Life Financial Potential Indian Life Insurance Joint Venture Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an instant option to avoid the declining market development. Therefore, intro of digital publishing might prove to be an immediate service with low amount of danger for the company. Nevertheless, the company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the information related to the customer demand, the potential markets, the government regulations and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
