Technology Plus Inc Moving Onward Case Study Solution and Analysis
Introduction
Technology Plus Inc Moving Onward Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting information, processing information and communication services. Major organisation segments of the business consist of; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports etc. Technology Plus Inc Moving Onward Case Study Analysis has actually become a specialized info company and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Technology Plus Inc Moving Onward Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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 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
Technology Plus Inc Moving Onward Case Study Analysis has specific strengths that can be utilized to minimize the risks, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Technology Plus Inc Moving Onward Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position allows the company to consider a number of advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Technology Plus Inc Moving Onward Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting Technology Plus Inc Moving Onward Case Study Help too, however the development could be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has postured certain dangers to Technology Plus Inc Moving Onward Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Technology Plus Inc Moving Onward Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual total earnings of Technology Plus Inc Moving Onward Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is rather effective in bring in a large number of customers at a potential rate.
Along with it, the second graph which shows the annual development in the Technology Plus Inc Moving Onward Case Study Solution total possessions, reveals that the company is rather effective in adding worth to its possessions through its incomes. The development in assets reveals that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative products and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Technology Plus Inc Moving Onward Case Study Analysis. Nevertheless, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Technology Plus Inc Moving Onward Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the threat of replacement 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. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Technology Plus Inc Moving Onward Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest 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 buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Technology Plus Inc Moving Onward Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks third and second in numerous market sections, with a significant focus on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Technology Plus Inc Moving Onward Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Technology Plus Inc Moving Onward Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger 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 business segments to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an instant service to avoid the decreasing market development. For that reason, introduction of digital publishing could prove to be an instant service with low amount of risk for the business. The business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to initially gathers the information associated with the customer need, the potential markets, the government guidelines and the data associated with the rivals presented in the market. After that, the company should decide one prospective section for its initial offering. It needs to gather research study that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the company should choose the preliminary offering. The business ought to go for the other markets if the preliminary offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a danger to the business's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
