African Tiger B Case Study Solution and Analysis
Intro
African Tiger B Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP 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, African Tiger B Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation 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 situation? Do the long important experience, technical resources and the capabilities of the company could be used 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
African Tiger B Case Study Help has specific strengths that can be utilized to minimize the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of African Tiger B Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the business to think about a number of advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its development program. The weak points of African Tiger B Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining because 2008, impacting African Tiger B Case Study Solution as well, but the growth could be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has positioned certain dangers to African Tiger B Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of African Tiger B Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual total incomes of African Tiger B Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a large number of consumers at a possible cost.
Together with it, the second chart which reveals the yearly growth in the African Tiger B Case Study Solution overall properties, shows that the business is rather efficient in adding value to its properties through its revenues. The growth in assets shows that the total value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data might be the analysis regarding the distribution of total earnings of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the African Tiger B Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting African Tiger B Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the files presented in the virtual libraries on certain websites. The changing consumer choices towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the African Tiger B Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of African Tiger B Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus 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 items in the market.
Suggestions
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 suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate service to prevent the declining industry development. Intro of digital publishing might prove to be an immediate option with low quantity of danger for the company. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer demand, the prospective markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a risk to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
