Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution and Analysis
Introduction
Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering details, processing details and communication services. Major organisation segments of the business include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its significant products include books, regulars, online media, exhibitions, research reports etc. Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Analysis has become a specialized details service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns 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 utilized 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
Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution has specific strengths that can be used to lower the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position enables the business to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, 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 ought to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, affecting Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Analysis as well, but the development could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed specific risks to Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly overall revenues of Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in attracting a big number of clients at a potential price.
In addition to it, the 2nd chart which reveals the yearly development in the Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution overall properties, shows that the business is rather efficient in including value to its assets through its incomes. The growth in properties shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered information might be the analysis relating to the distribution of total profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out 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 given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame 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 said that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Analysis. However, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used 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 guidelines 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.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall 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 needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sectors, with a significant focus on educational publications. CIP serves as a risk 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 marketplace share of Taikang Insurance Standing Out In Chinas Crowded Insurance Market 2 Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an instant service to prevent the decreasing industry development. For that reason, intro of digital publishing could prove to be an immediate solution with low amount of danger for the business. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the consumer need, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
