The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution and Analysis
Intro
The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing info and interaction services. Major service sectors of the company include; books, regulars, consultancy and distribution. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibitions, research reports and so on. The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution has actually become a specialized details supplier and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Analysis in particular. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Analysis has particular strengths that can be used to decrease the threats, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position enables the business to think about several development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restrictions for the business in implementing its advancement program. The weak points of The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution as well, however the growth might be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain risks to The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to presence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. The overall financial performance of the company could be examined by utilizing the charts offered in the case Appendices. It could be examined from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Help is growing and the business is rather effective in bring in a a great deal of consumers at a possible cost.
Together with it, the second graph which reveals the yearly growth in the The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution total assets, reveals that the company is quite effective in adding worth to its assets through its incomes. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis concerning the circulation of overall incomes of the business. Huge part of the incomes 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 company sectors with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the total service at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products etc. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Solution. However, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Merger Of Ucsf Medical Center And Stanford Health Services 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 must not be damaging for the environment.
Legal.
Legal policies 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 Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Merger Of Ucsf Medical Center And Stanford Health Services Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Merger Of Ucsf Medical Center And Stanford Health Services 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 might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing market 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 variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an instant solution to avoid the declining market growth. Introduction of digital publishing might prove to be an instant service with low amount of danger for the company. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must initially collects the information related to the customer need, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a hazard to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
