Valley Wide Health Systems Inc 5 Case Study Solution and Analysis
Valley Wide Health Systems Inc 5 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Valley Wide Health Systems Inc 5 Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 circumstance? 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 business sustain its long term competitive position in future?
Valley Wide Health Systems Inc 5 Case Study Help has specific strengths that can be used to reduce the dangers, 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 5 Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the company to think about a number of development opportunities without any worry of raising fund externally.
Along with the strengths, the company has certain weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Valley Wide Health Systems Inc 5 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term development.
The growth of the publishing market is decreasing since 2008, affecting Valley Wide Health Systems Inc 5 Case Study Solution as well, but the development could be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has actually posed certain risks to Valley Wide Health Systems Inc 5 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Valley Wide Health Systems Inc 5 Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry along with presence of high competitors increases the hazard of losing the consumer base.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be calculated. Nevertheless, the total monetary performance of the business could be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Valley Wide Health Systems Inc 5 Case Study Help is growing and the company is quite efficient in bring in a large number of consumers at a prospective rate.
Along with it, the 2nd graph which reveals the annual development in the Valley Wide Health Systems Inc 5 Case Study Analysis overall possessions, reveals that the business is quite effective in including worth to its assets through its incomes. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis regarding the circulation of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential growth to attain its future development goal.
PESTEL analysis could be performed to learn the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Valley Wide Health Systems Inc 5 Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Valley Wide Health Systems Inc 5 Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the digital libraries on certain sites. The altering customer choices towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal 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 marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Valley Wide Health Systems Inc 5 Case Study Analysis consist of the suppliers of the paper for releasing files. 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.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
CMP operates in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Valley Wide Health Systems Inc 5 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a major concentrate on educational publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Valley Wide Health Systems Inc 5 Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Valley Wide Health Systems Inc 5 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business need an instant solution to avoid the declining market growth. Introduction of digital publishing might prove to be an immediate service with low amount of threat for the company. The business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the information connected to the consumer demand, the prospective markets, the federal government guidelines and the information connected to the rivals provided in the market. After that, the business must decide one possible segment for its preliminary offering. It must gather research that how it could separate its digital publishing from the existing competitors' items. The steps above the business must go for the preliminary offering. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would have the ability to implement its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, showing a risk to the business's long term existence, however the situation can be controlled by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.