Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution and Analysis
Intro
Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a big thorough Science and Innovation 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 a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing market in basic and Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
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 abilities of the business 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
Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Help has particular strengths that can be utilized to decrease the risks, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong monetary position enables the business to think about numerous development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, impacting Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Analysis as well, but the development could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured certain hazards to Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry together with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. Nevertheless, the overall monetary performance of the company might be examined by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution is growing and the business is rather effective in drawing in a a great deal of consumers at a prospective price.
Along with it, the 2nd graph which reveals the yearly growth in the Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Analysis overall possessions, shows that the company is quite effective in including value to its properties through its revenues. The development in possessions shows that the overall worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis relating to the distribution of overall revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the general company at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out useful materials and so on. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines 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 Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective 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 new entrants to enter in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Help include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Help consist of;.
• Chemical Industry 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 current market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Us Healthcare Reform Reaction To The Patient Protection And Affordable Care Act Of 2010 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an instant solution to prevent the declining industry development. Intro of digital publishing could prove to be an instant solution with low quantity of risk for the business. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business should initially collects the data related to the customer demand, the prospective markets, the government policies and the information related to the competitors presented in the market. After that, the business should choose one prospective sector for its initial offering. It ought to collect research that how it might separate its digital publishing from the existing competitors' items. The steps above the business must go for the initial offering. If the preliminary offering shows a success, the company should choose the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a threat to the business's long term existence, however the circumstance can be managed by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
