Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution and Analysis
Introduction
Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Telefonicas Bid For The Mobile Market In Brazil B Case Study Analysis has particular strengths that can be utilized to reduce the threats, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the company to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weak points of Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing because 2008, affecting Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution as well, however the development could be revived by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned particular risks to Telefonicas Bid For The Mobile Market In Brazil B Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. The total monetary performance of the business might be analyzed by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution is growing and the business is rather effective in bring in a a great deal of consumers at a potential cost.
In addition to it, the second chart which reveals the annual development in the Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution total properties, shows that the company is quite efficient in including value to its properties through its profits. The development in assets shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis concerning the circulation of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals 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 Party of China. For that reason, it could be said that the overall political forces affecting Telefonicas Bid For The Mobile Market In Brazil B Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Telefonicas Bid For The Mobile Market In Brazil B Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the total organisation at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Telefonicas Bid For The Mobile Market In Brazil B Case Study Analysis includes the issues of ecological communities 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 needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Telefonicas Bid For The Mobile Market In Brazil B Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Telefonicas Bid For The Mobile Market In Brazil B Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a major focus on educational publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Telefonicas Bid For The Mobile Market In Brazil B Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Telefonicas Bid For The Mobile Market In Brazil B Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company require an immediate solution to avoid the decreasing market development. For that reason, introduction of digital publishing might prove to be an instant service with low amount of danger for the business. However, the business might also 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 must initially gathers the data connected to the customer demand, the potential markets, the federal government regulations and the information connected to the rivals provided in the market. After that, the business ought to decide one prospective segment for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the company should go for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term presence, but the scenario can be managed by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
