The U S Life Insurance Industry Case Study Solution and Analysis
Intro
The U S Life Insurance Industry Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in general and The U S Life Insurance Industry Case Study Help in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised a number of concerns 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 utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The U S Life Insurance Industry Case Study Help has particular strengths that can be used to lower the hazards, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The U S Life Insurance Industry Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the business to consider a number of development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase restraints for the business in executing its development program. The weak points of The U S Life Insurance Industry Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting The U S Life Insurance Industry Case Study Analysis also, but the development might be revived by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has presented specific dangers to The U S Life Insurance Industry Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of The U S Life Insurance Industry Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total incomes of The U S Life Insurance Industry Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in drawing in a large number of customers at a potential cost.
Along with it, the 2nd graph which reveals the yearly development in the The U S Life Insurance Industry Case Study Help overall possessions, reveals that the company is quite effective in including value to its properties through its profits. The development in possessions reveals that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the given data could be the analysis concerning the distribution of total incomes of the business. Huge part of the profits 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 company segments with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the efficiency of the business and the current 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 might have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard 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 technology in addition to the rise of digital publishing could minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The U S Life Insurance Industry Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on specific websites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The U S Life Insurance Industry Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest 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 market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The U S Life Insurance Industry Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product 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 service sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the declining market growth. The company could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially gathers the data associated with the customer need, the possible markets, the government regulations and the data related to the competitors provided in the market. After that, the company must choose one possible segment for its initial offering. It ought to gather research that how it could distinguish its digital publishing from the existing rivals' items. The actions above the company must go for the preliminary offering. If the initial offering shows a success, the business ought to opt for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, revealing a danger to the company's long term existence, however the circumstance can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
