Take Two Interactive Software Inc 2 Case Study Solution and Analysis
Intro
Take Two Interactive Software Inc 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and Take Two Interactive Software Inc 2 Case Study Help in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing development 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 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 abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Take Two Interactive Software Inc 2 Case Study Solution has particular strengths that can be utilized to minimize the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Take Two Interactive Software Inc 2 Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the company to consider several development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of Take Two Interactive Software Inc 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways 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 expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Take Two Interactive Software Inc 2 Case Study Solution also, however the development could be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured particular threats to Take Two Interactive Software Inc 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Take Two Interactive Software Inc 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall earnings of Take Two Interactive Software Inc 2 Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the business is quite efficient in drawing in a large number of consumers at a potential price.
Along with it, the second graph which shows the yearly growth in the Take Two Interactive Software Inc 2 Case Study Help overall assets, shows that the business is quite efficient in adding value to its properties through its revenues. The growth in properties reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis regarding the distribution of overall earnings of the company. Major 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 could move towards other business segments with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting Take Two Interactive Software Inc 2 Case Study Analysis company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out informative products etc. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Take Two Interactive Software Inc 2 Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Take Two Interactive Software Inc 2 Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially 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 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 brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Take Two Interactive Software Inc 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Take Two Interactive Software Inc 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Take Two Interactive Software Inc 2 Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an instant option to avoid the decreasing industry development. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must first gathers the information related to the consumer need, the potential markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering proves 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
Although, the growth of the publishing market is decreasing considering that 2008, showing a threat to the business's long term existence, but the scenario can be managed by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
