Ducati Texas Pacific Group Case Study Solution and Analysis
Introduction
Ducati Texas Pacific Group Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and Ducati Texas Pacific Group Case Study Analysis in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous questions 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ducati Texas Pacific Group Case Study Analysis has specific strengths that can be utilized to lower the hazards, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Ducati Texas Pacific Group Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position allows the company to consider a number of advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Ducati Texas Pacific Group Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business 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 expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Ducati Texas Pacific Group Case Study Analysis also, but the development might be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has postured particular threats to Ducati Texas Pacific Group Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Ducati Texas Pacific Group Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly overall earnings of Ducati Texas Pacific Group Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in attracting a big number of consumers at a possible cost.
Together with it, the second graph which shows the annual development in the Ducati Texas Pacific Group Case Study Analysis overall possessions, shows that the company is rather effective in adding value to its properties through its incomes. The growth in assets shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the circulation of overall earnings of the business. Huge 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 prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting Ducati Texas Pacific Group Case Study Solution service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading useful products and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of customers of the Ducati Texas Pacific Group Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Ducati Texas Pacific Group Case Study Solution consists of 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 used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Ducati Texas Pacific Group Case Study Help consist of the providers of the paper for publishing 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 Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Ducati Texas Pacific Group Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant option to prevent the declining market growth. The company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially collects the information related to the consumer need, the potential markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, revealing a danger to the business's long term presence, however the scenario can be managed by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
