Cyclone Tire Company Case Study Solution and Analysis
Intro
Cyclone Tire Company Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing details and communication services. Significant service sections of the company include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. Cyclone Tire Company Case Study Solution has ended up being a specialized information supplier and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Cyclone Tire Company Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous concerns 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 capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cyclone Tire Company Case Study Help has specific strengths that can be made use of to minimize the threats, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Cyclone Tire Company Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position permits the company to consider a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase constraints for the business in executing its advancement program. The weaknesses of Cyclone Tire Company Case Study Help are offered as follows;
• Despite of being a science and technology 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 growth. It must propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Cyclone Tire Company Case Study Help too, but the development could be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific hazards to Cyclone Tire Company Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Cyclone Tire Company Case Study Solution due to the consumer 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 items, etc.
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the threat of losing the client base.
Monetary 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 incomes of Cyclone Tire Company Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite effective in bring in a large number of clients at a possible cost.
Together with it, the second graph which reveals the annual development in the Cyclone Tire Company Case Study Help overall assets, reveals that the business is quite effective in adding worth to its possessions through its revenues. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis concerning the circulation of overall earnings of the company. Major part of the revenues 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 sectors with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Cyclone Tire Company Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the total service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Cyclone Tire Company Case Study Solution. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Cyclone Tire Company Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies 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 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the digital libraries on certain websites. The altering customer choices towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Cyclone Tire Company Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Cyclone Tire Company Case Study Analysis include;.
• Chemical Industry 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 could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Cyclone Tire Company Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an instant option to prevent the declining market growth. Introduction of digital publishing could prove to be an immediate solution with low amount of risk for the company. However, the business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the customer need, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term presence, but the scenario 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 brand-new markets.
