White Mountain Health Care 2 Case Study Solution and Analysis
Introduction
White Mountain Health Care 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering details, processing information and communication services. Major service segments of the business consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. White Mountain Health Care 2 Case Study Analysis has become a specialized info provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, White Mountain Health Care 2 Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 used 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
White Mountain Health Care 2 Case Study Solution has certain strengths that can be utilized to minimize the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of White Mountain Health Care 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position allows the business to think about several development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restraints for the company in implementing its advancement program. The weak points of White Mountain Health Care 2 Case Study Analysis are offered 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 needs to propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting White Mountain Health Care 2 Case Study Help as well, however the development might be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned particular threats to White Mountain Health Care 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of White Mountain Health Care 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. Nevertheless, the overall financial efficiency of the company might be examined by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of White Mountain Health Care 2 Case Study Solution is growing and the business is rather efficient in bring in a large number of customers at a possible rate.
In addition to it, the second chart which shows the yearly growth in the White Mountain Health Care 2 Case Study Help total possessions, reveals that the business is quite effective in including worth to its assets through its profits. The growth in assets reveals that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the circulation of total revenues of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces impacting White Mountain Health Care 2 Case Study Help company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products etc. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the White Mountain Health Care 2 Case Study Solution. However, the consumer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting White Mountain Health Care 2 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging 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 Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the White Mountain Health Care 2 Case Study Help include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of White Mountain Health Care 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as White Mountain Health Care 2 Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company require an instant service to avoid the declining market development. Introduction of digital publishing could prove to be an instant service with low quantity of threat for the business. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially collects the information related to the consumer demand, the potential markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a threat to the company's long term existence, however the scenario can be controlled by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
