Ducati Texas Pacific Group Case Study Solution and Analysis
Ducati Texas Pacific Group Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Ducati Texas Pacific Group Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several concerns 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 abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Ducati Texas Pacific Group Case Study Analysis has particular strengths that can be utilized to reduce the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ducati Texas Pacific Group Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position permits the business to consider several development opportunities with no fear of raising fund externally.
Together 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 Analysis are offered 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 development. It should propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is decreasing since 2008, affecting Ducati Texas Pacific Group Case Study Help as well, however the development could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has actually presented specific risks to Ducati Texas Pacific Group Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Ducati Texas Pacific Group Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry in addition to presence of high competitors increases the hazard of losing the client base.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly overall revenues of Ducati Texas Pacific Group Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite effective in drawing in a large number of clients at a prospective price.
Along with it, the 2nd chart which reveals the yearly growth in the Ducati Texas Pacific Group Case Study Analysis overall properties, shows that the company is rather efficient in adding value to its assets through its incomes. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis concerning the distribution of total revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a prospective development to accomplish its future development goal.
PESTEL analysis could be performed to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact 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 Party of China. Therefore, it could be stated that the general political forces affecting Ducati Texas Pacific Group Case Study Analysis business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Ducati Texas Pacific Group Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the risk 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 etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Ducati Texas Pacific Group Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Ducati Texas Pacific Group Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Ducati Texas Pacific Group Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the company require an instant option to prevent the decreasing market development. Therefore, intro of digital publishing might prove to be an immediate service with low quantity of risk for the business. The business could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the information related to the consumer need, the possible markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing because 2008, revealing a threat to the business's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.