Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution and Analysis
Intro
Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing info and interaction services. Significant company segments of the company consist of; books, regulars, consultancy and distribution. The company has a huge product portfolio and its major items consist of books, regulars, online media, exhibitions, research reports and so on. Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Help has actually become a specialized info provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized 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
Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution has certain strengths that can be made use of to minimize the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the business to think about a number of advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase restrictions for the company in executing its development program. The weaknesses of Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional 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 particular growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution also, but the growth could be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing 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 utilizing its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has postured certain risks to Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be computed. The overall monetary performance of the company might be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Help is growing and the company is quite efficient in bring in a large number of consumers at a prospective cost.
In addition to it, the second chart which reveals the yearly development in the Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Solution total properties, reveals that the business is rather efficient in including worth to its assets through its revenues. The development in possessions shows that the total value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the distribution of total earnings of the business. Huge part of the earnings 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 attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies associated with the import of books affect the general company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative products etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Analysis. However, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 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 disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 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.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Telegraph Media Group The Newspaper Is Dead Long Live The B Editorial Change Taking The Telegraph Into The 21st Century 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to avoid the decreasing market growth. For that reason, introduction of digital publishing could show to be an instant service with low amount of threat for the company. The company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to first gathers the information related to the customer need, the possible markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a hazard to the business's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
