Valley Wide Health Systems Inc 2 Case Study Solution and Analysis
Introduction
Valley Wide Health Systems Inc 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Valley Wide Health Systems Inc 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• 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 a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Valley Wide Health Systems Inc 2 Case Study Help has certain strengths that can be made use of to decrease the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Valley Wide Health Systems Inc 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position enables the company to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its development program. The weak points of Valley Wide Health Systems Inc 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, impacting Valley Wide Health Systems Inc 2 Case Study Analysis as well, but the development might be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has presented specific risks to Valley Wide Health Systems Inc 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Valley Wide Health Systems Inc 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly total profits of Valley Wide Health Systems Inc 2 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a possible rate.
Along with it, the second chart which shows the annual growth in the Valley Wide Health Systems Inc 2 Case Study Help total possessions, reveals that the business is rather efficient in adding worth to its assets through its profits. The development in possessions shows that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis regarding the circulation of overall revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Valley Wide Health Systems Inc 2 Case Study Solution organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Valley Wide Health Systems Inc 2 Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the general organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Valley Wide Health Systems Inc 2 Case Study Help consists of the concerns of ecological 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 utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Valley Wide Health Systems Inc 2 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence 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. Major rivals of Valley Wide Health Systems Inc 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger 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 business sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant option to avoid the decreasing market development. The business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the data related to the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a threat to the business's long term presence, however the circumstance can be managed by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
