Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Solution and Analysis
Introduction
Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing information and interaction services. Major company sectors of the business consist of; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports etc. Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help has ended up being a specialized details service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
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 capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help has particular strengths that can be made use of to lower the dangers, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position permits the company to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining since 2008, impacting Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Solution as well, however the growth could be revived by availing certain chances presented in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has actually positioned specific dangers to Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be computed. The general monetary performance of the company could be examined by using the charts provided in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Analysis is growing and the business is rather effective in attracting a a great deal of customers at a potential cost.
Along with it, the 2nd graph which shows the yearly development in the Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Solution overall properties, reveals that the company is rather efficient in adding value to its properties through its revenues. The growth in assets shows that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the circulation of total profits of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the general business at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out informative materials and so on. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the documents provided in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Taiwans High Speed Rail A Public Private Partnership Hits A Speed Bump Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant option to prevent the declining market development. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to initially gathers the data associated with the customer need, the prospective markets, the federal government guidelines and the data connected to the competitors presented in the market. After that, the company needs to choose one prospective section for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' products. After all the steps above the company ought to go for the preliminary offering. If the initial offering shows a success, the company needs to choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a threat to the company's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
