Valley Wide Health Systems Inc 5 Case Study Solution and Analysis
Introduction
Valley Wide Health Systems Inc 5 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Valley Wide Health Systems Inc 5 Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement 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 capabilities of the company could be made use of to pursue 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 5 Case Study Solution has specific strengths that can be utilized to decrease the threats, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Valley Wide Health Systems Inc 5 Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong monetary position permits the business to consider several advancement chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which could increase restrictions for the company in executing its development program. The weaknesses of Valley Wide Health Systems Inc 5 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining given that 2008, impacting Valley Wide Health Systems Inc 5 Case Study Solution as well, however the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has positioned certain dangers to Valley Wide Health Systems Inc 5 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Valley Wide Health Systems Inc 5 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. However, the overall monetary performance of the company might be analyzed by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Valley Wide Health Systems Inc 5 Case Study Solution is growing and the business is quite effective in attracting a large number of consumers at a possible cost.
In addition to it, the second chart which reveals the yearly development in the Valley Wide Health Systems Inc 5 Case Study Solution total assets, shows that the company is rather effective in including value to its properties through its profits. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the distribution of total earnings of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Valley Wide Health Systems Inc 5 Case Study Help service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of customers of the Valley Wide Health Systems Inc 5 Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Valley Wide Health Systems Inc 5 Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to 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 Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Valley Wide Health Systems Inc 5 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market 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. Major rivals of Valley Wide Health Systems Inc 5 Case Study Analysis include;.
• 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 could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Valley Wide Health Systems Inc 5 Case Study Help and CIP. It is also one of 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
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective 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 using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an immediate option to avoid the decreasing industry growth. For that reason, intro of digital publishing might show to be an instant service with low quantity of danger for the company. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the information related to the customer need, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a hazard to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
