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The Health Haven A Case Study Solution and Analysis


Introduction

The Health Haven A Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Critical Problems

CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and The Health Haven A Case Study Help in specific. These aspects include;

• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
Executive Summary
The change of the macro markets have raised several concerns 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 strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


The Health Haven A Case Study Analysis has specific strengths that can be used to reduce the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;

• The long term experience of The Health Haven A Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the company to think about numerous advancement opportunities with no fear of raising fund externally.

Weak points

Together with the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of The Health Haven A Case Study Solution are offered 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 development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing market is decreasing since 2008, impacting The Health Haven A Case Study Analysis also, but the growth might be revived by availing certain chances presented in the market. The market chances for CMP consist of;

• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.

Threats

The changing macro patterns in the market and increasing competition in the publishing market has actually presented particular hazards to The Health Haven A Case Study Help including;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries could result in declining market share of The Health Haven A Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market along with presence of high competitors increases the risk of losing the client base.

Financial Analysis.
Swot Analysis
Due to lack of information, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly total incomes of The Health Haven A Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in drawing in a big number of consumers at a potential price.

Together with it, the 2nd graph which shows the yearly growth in the The Health Haven A Case Study Help total assets, shows that the business is quite efficient in adding value to its possessions through its earnings. The growth in assets shows that the total worth of the company is also increasing with increasing the total profits. (Unknown, 2013).

Another financial analysis of the company utilizing the provided information could be the analysis relating to the distribution of overall revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a potential development to attain its future advancement goal.

PESTEL Analysis

PESTEL analysis might be conducted to discover the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.

Economical.

Economic 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 growth of the country. All these forces integrate impact the demand for the publishing market.

Social and Demographical.

The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.

Technological.

Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces affecting The Health Haven A Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.

Industry Analysis (Porter's Five Forces Design).

Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.

Threat of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.

Danger of Replacement.

Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the virtual libraries on specific websites. The changing customer choices towards digital learning increase the risk of alternative for the market.

Competitive Rivalry.

Competitive rivalry in the publishing industry is high. The presence 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. In addition to it, new entrants are also participating in the market increasing the competition for CMP.

Bargaining Power of Provider.

The significant providers of the The Health Haven A Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.

Competitors Analysis.

CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Health Haven A Case Study Solution include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market circumstance.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its items in the market.

Recommendations

As the choices are shifting towards digital publishing and the company need an immediate service to prevent the decreasing industry growth. The company might also consider the growth program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its product portfolio, the business must first gathers the information associated with the customer need, the possible markets, the federal government regulations and the information connected to the competitors presented in the market. After that, the business should decide one possible segment for its initial offering. It must collect research study that how it might separate its digital publishing from the existing competitors' products. After all the actions above the company must opt for the preliminary offering. If the initial offering proves a success, the business must opt for the other markets. In this way the business would be able to implement its digital publishing program.

Conclusion

The development of the publishing market is decreasing considering that 2008, showing a danger to the company's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.

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