Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution and Analysis
Introduction
Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions 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 company 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 C Editorial Change The Key Word Is Integration 2 Case Study Analysis has particular strengths that can be used to lower the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position allows the company to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase restrictions for the business in executing its development program. The weak points of Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution as well, however the growth might be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific threats to Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution consisting of;( 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 C Editorial Change The Key Word Is Integration 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly total earnings of Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite effective in attracting a big number of clients at a potential cost.
Together with it, the second chart which shows the annual development in the Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution overall possessions, shows that the business is rather efficient in including value to its properties through its profits. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the circulation of total incomes of the company. Major 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 business could move towards other company sections with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the economic policies related to the import of books affect the overall organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful products etc. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the virtual libraries on particular websites. The changing customer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a major focus on educational 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 might wean the market share of Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Telegraph Media Group The Newspaper Is Dead Long Live The C Editorial Change The Key Word Is Integration 2 Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk 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 company sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
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 attain its future development. As the preferences are moving towards digital publishing and the business need an immediate service to prevent the decreasing industry growth. Intro of digital publishing could prove to be an instant option with low quantity of risk for the company. The business might 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 must initially gathers the data related to the consumer demand, the possible markets, the federal government guidelines and the information connected to the competitors presented in the market. After that, the company needs to choose one potential segment for its initial offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' items. After all the steps above the company ought to opt for the preliminary offering. The company must go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a danger to the business's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
