Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Solution and Analysis
Introduction
Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Analysis has certain strengths that can be utilized to minimize the threats, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the business to think about a number of advancement opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase constraints for the business in implementing its development program. The weak points of Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia 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 compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing because 2008, impacting Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help as well, however the development might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually posed particular hazards to Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market together with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly total earnings of Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help throughout 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 attracting a large number of clients at a possible rate.
Together with it, the 2nd chart which shows the yearly growth in the Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Analysis overall assets, shows that the business is rather efficient in including worth to its possessions through its earnings. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the circulation of total incomes of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the released files is the files presented in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major concentrate on educational publications. CIP functions 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 marketplace share of Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Taeq Premium Lifestyle Private Brand B Grupo Exito Colombia Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing industry development. The company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company must initially gathers the information associated with the customer demand, the possible markets, the government policies and the information associated with the competitors presented in the market. After that, the company must choose one possible sector for its initial offering. It must gather research study that how it could distinguish its digital publishing from the existing competitors' items. The steps above the company ought to go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a risk to the business's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
