Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Solution and Analysis
Introduction
Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing details and communication services. Major service sections of the business include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Solution has actually ended up being a specialized details provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation 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 pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Solution has specific strengths that can be made use of to lower the risks, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the company to consider numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Solution 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 growth. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, affecting Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Solution as well, but the development might be restored by availing specific chances provided in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned certain risks to Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market along with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual overall incomes of Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a large number of consumers at a possible rate.
In addition to it, the second graph which shows the yearly development in the Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Help total properties, shows that the company is quite efficient in adding worth to its assets through its incomes. The growth in assets reveals that the overall value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis concerning the circulation of overall earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving 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 strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in numerous market sectors, with a major concentrate on educational publications. 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 marketplace share of Travelers Insurance Focusing On Climate Change And Natural Catastrophe Risk Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate service to prevent the declining market growth. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the data related to the customer need, the prospective markets, the federal government policies and the information related to the competitors provided in the market. After that, the company must decide one potential sector for its initial offering. It must gather research study that how it might differentiate its digital publishing from the existing rivals' items. After all the steps above the company must opt for the initial offering. The business should go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
