Take Two Interactive Software Inc Case Study Solution and Analysis
Intro
Take Two Interactive Software Inc Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing details and communication services. Significant organisation sectors of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major products include books, periodicals, online media, exhibitions, research study reports and so on. Take Two Interactive Software Inc Case Study Help has actually ended up being a specialized info provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Take Two Interactive Software Inc Case Study Help in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised a number of 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 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 Case Study Solution has particular strengths that can be made use of to lower the hazards, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Take Two Interactive Software Inc Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing 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 danger and provide high value to its clients.
• Strong financial position permits the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Take Two Interactive Software Inc Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Take Two Interactive Software Inc Case Study Help as well, but the development could be restored by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business might 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 growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Take Two Interactive Software Inc Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Take Two Interactive Software Inc Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the annual overall profits of Take Two Interactive Software Inc Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is quite efficient in drawing in a big number of clients at a possible price.
In addition to it, the second chart which shows the yearly development in the Take Two Interactive Software Inc Case Study Analysis overall properties, shows that the company is quite efficient in adding value to its assets through its profits. The development in properties reveals that the total value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis relating to the distribution of overall earnings of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Take Two Interactive Software Inc Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies related to the import of books affect the total organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing might reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Take Two Interactive Software Inc Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding 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 forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Take Two Interactive Software Inc Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Take Two Interactive Software Inc Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Take Two Interactive Software Inc Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 service segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market development. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data related to the customer demand, the possible markets, the government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a hazard to the business's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
