Teena Lerner Dividing The Pie At Rx Capital Video Case Study Solution and Analysis
Introduction
Teena Lerner Dividing The Pie At Rx Capital Video Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing info and communication services. Major service sections of the business include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products include books, regulars, online media, exhibitions, research reports and so on. Teena Lerner Dividing The Pie At Rx Capital Video Case Study Analysis has actually ended up being a specialized details provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and Teena Lerner Dividing The Pie At Rx Capital Video Case Study Analysis in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change 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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Teena Lerner Dividing The Pie At Rx Capital Video Case Study Solution has particular strengths that can be utilized to minimize the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Teena Lerner Dividing The Pie At Rx Capital Video Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the company to think about several development opportunities with no worry 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 Teena Lerner Dividing The Pie At Rx Capital Video Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting Teena Lerner Dividing The Pie At Rx Capital Video Case Study Solution as well, however the growth might be revived by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has postured specific hazards to Teena Lerner Dividing The Pie At Rx Capital Video Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Teena Lerner Dividing The Pie At Rx Capital Video Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total profits of Teena Lerner Dividing The Pie At Rx Capital Video Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in drawing in a big number of customers at a potential price.
Along with it, the 2nd chart which reveals the yearly growth in the Teena Lerner Dividing The Pie At Rx Capital Video Case Study Solution total properties, reveals that the business is quite efficient in including worth to its possessions through its revenues. The development in properties shows that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis concerning the distribution of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting Teena Lerner Dividing The Pie At Rx Capital Video Case Study Analysis service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, 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 consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Teena Lerner Dividing The Pie At Rx Capital Video Case Study Help 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 must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Teena Lerner Dividing The Pie At Rx Capital Video Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Teena Lerner Dividing The Pie At Rx Capital Video Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a major concentrate on academic publications. CIP serves as a hazard 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 Teena Lerner Dividing The Pie At Rx Capital Video Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the 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 company require an instant solution to avoid the decreasing industry growth. The company could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data related to the customer demand, the possible markets, the federal government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
