Valley Wide Health Systems Inc 4 Case Study Solution and Analysis
Intro
Valley Wide Health Systems Inc 4 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting information, processing details and communication services. Major service sectors of the company include; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. Valley Wide Health Systems Inc 4 Case Study Help has ended up being a specialized information company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Valley Wide Health Systems Inc 4 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future development 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 4 Case Study Analysis has particular strengths that can be used to minimize the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Valley Wide Health Systems Inc 4 Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong financial position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Valley Wide Health Systems Inc 4 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Valley Wide Health Systems Inc 4 Case Study Solution also, however the development might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed specific dangers to Valley Wide Health Systems Inc 4 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Valley Wide Health Systems Inc 4 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly overall earnings of Valley Wide Health Systems Inc 4 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is quite effective in bring in a big number of consumers at a potential cost.
Along with it, the 2nd chart which shows the yearly growth in the Valley Wide Health Systems Inc 4 Case Study Analysis overall properties, shows that the business is rather effective in adding value to its properties through its earnings. The development in assets shows that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis concerning the distribution of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the company. 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 individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Valley Wide Health Systems Inc 4 Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the general company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Valley Wide Health Systems Inc 4 Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Valley Wide Health Systems Inc 4 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Valley Wide Health Systems Inc 4 Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Valley Wide Health Systems Inc 4 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks third and second in numerous market sections, with a significant focus on educational publications. CIP acts as a threat 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 Valley Wide Health Systems Inc 4 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an instant service to avoid the decreasing industry development. Therefore, introduction of digital publishing might prove to be an immediate service with low amount of danger for the business. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first collects the data related to the consumer need, the possible markets, the federal government policies and the information connected to the competitors provided in the market. After that, the company needs to choose one potential sector for its initial offering. It ought to collect research study that how it might separate its digital publishing from the existing rivals' products. After all the steps above the company need to go for the preliminary offering. The company should go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a hazard to the business's long term presence, however the situation can be managed by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
