The Health Haven B Case Study Solution and Analysis
Intro
The Health Haven B Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, The Health Haven B Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of 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 company could be used to pursue 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 B Case Study Help has particular strengths that can be made use of to decrease the risks, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Health Haven B Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the business to think about a number of advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase constraints for the business in implementing its development program. The weaknesses of The Health Haven B Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting The Health Haven B Case Study Help also, but the growth might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce 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 lower its reliance over Chinese markets by using its large funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain risks to The Health Haven B Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of The Health Haven B Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. However, the general financial performance of the business might be analyzed by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Health Haven B Case Study Analysis is growing and the company is quite efficient in bring in a a great deal of clients at a potential rate.
In addition to it, the second chart which reveals the yearly development in the The Health Haven B Case Study Solution overall properties, reveals that the business is rather efficient in adding value to its properties through its profits. The development in possessions shows that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the distribution of overall profits of the company. Huge 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 company might move towards other service segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the The Health Haven B Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the general business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting The Health Haven B Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Health Haven B Case Study Help include the suppliers of the paper for releasing files. 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.
Bargaining power of purchaser 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.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Health Haven B Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as The Health Haven B Case Study Analysis and CIP. It is also one of the popular players in the publishing market 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 number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate option to prevent the declining industry development. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the data related to the customer need, the potential markets, the government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a danger to the business's long term presence, however the scenario can be managed by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
