Tehelka In Crisis 2 Case Study Solution and Analysis
Intro
Tehelka In Crisis 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing info and communication services. Major business sectors of the company include; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its major products include books, periodicals, online media, exhibitions, research study reports and so on. Tehelka In Crisis 2 Case Study Analysis has become a specialized information provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and Tehelka In Crisis 2 Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
Tehelka In Crisis 2 Case Study Help has specific strengths that can be utilized to minimize the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Tehelka In Crisis 2 Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position allows the company to think about a number of advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Tehelka In Crisis 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company 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 must propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Tehelka In Crisis 2 Case Study Solution as well, but the development might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has positioned specific hazards to Tehelka In Crisis 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Tehelka In Crisis 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly total revenues of Tehelka In Crisis 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is rather effective in attracting a large number of consumers at a prospective price.
Along with it, the second chart which reveals the yearly growth in the Tehelka In Crisis 2 Case Study Solution total properties, shows that the company is quite effective in including worth to its properties through its earnings. The growth in assets shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the circulation of overall profits of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Tehelka In Crisis 2 Case Study Analysis organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading useful products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of consumers of the Tehelka In Crisis 2 Case Study Help. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Tehelka In Crisis 2 Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on specific websites. The changing customer choices towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Tehelka In Crisis 2 Case Study Solution include the suppliers 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 provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal 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 Tehelka In Crisis 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks second and third in different market segments, with a major concentrate on academic publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Tehelka In Crisis 2 Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. 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: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
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 introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
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 demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining industry growth. Introduction of digital publishing might show to be an immediate option with low amount of danger for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information related to the consumer need, the possible markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a hazard to the company's long term presence, but the scenario can be controlled by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
