The St Xavier Healing Touch Hospital 2 Case Study Solution and Analysis
The St Xavier Healing Touch Hospital 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, The St Xavier Healing Touch Hospital 2 Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
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 abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
The St Xavier Healing Touch Hospital 2 Case Study Help has certain strengths that can be utilized to decrease the hazards, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The St Xavier Healing Touch Hospital 2 Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position allows the business to think about a number of development chances without any worry of raising fund externally.
Together with the strengths, the business has certain weak points which might increase constraints for the business in implementing its advancement program. The weak points of The St Xavier Healing Touch Hospital 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is declining considering that 2008, affecting The St Xavier Healing Touch Hospital 2 Case Study Solution as well, but the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business might also 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 expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competition in the publishing market has actually postured specific threats to The St Xavier Healing Touch Hospital 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of The St Xavier Healing Touch Hospital 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the risk of losing the consumer base.
The business has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be computed. The total monetary performance of the company could be examined by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The St Xavier Healing Touch Hospital 2 Case Study Help is growing and the company is quite effective in drawing in a large number of consumers at a potential rate.
Along with it, the second chart which shows the annual development in the The St Xavier Healing Touch Hospital 2 Case Study Solution overall properties, shows that the business is rather effective in adding worth to its possessions through its earnings. The growth in properties reveals that the total worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the circulation of total profits of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a potential development to accomplish its future advancement goal.
PESTEL analysis could be carried out to find out the different external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be said that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental forces affecting The St Xavier Healing Touch Hospital 2 Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The St Xavier Healing Touch Hospital 2 Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 purchasers needs high quality documents at competitive prices.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The St Xavier Healing Touch Hospital 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market segments, with a significant focus on educational publications. CIP functions as a danger 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 The St Xavier Healing Touch Hospital 2 Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as The St Xavier Healing Touch Hospital 2 Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• 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.
As the choices are shifting towards digital publishing and the business need an instant service to prevent the decreasing industry development. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should first collects the information connected to the customer demand, the prospective markets, the federal government regulations and the information related to the competitors provided in the market. After that, the company must decide one prospective sector for its preliminary offering. It must gather research that how it might differentiate its digital publishing from the existing rivals' items. The actions above the company should go for the initial offering. If the initial offering proves a success, the business should go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is decreasing because 2008, showing a threat to the company's long term existence, but the scenario can be managed by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.