Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Solution and Analysis
Introduction
Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details company and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development 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 E Change A Work In Progress Case Study Analysis has specific strengths that can be made use of to minimize the threats, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the company to think about a number of development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining given that 2008, affecting Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Analysis as well, however the growth might be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned particular risks to Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be calculated. The overall financial performance of the business could be evaluated by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Help is growing and the company is rather effective in drawing in a large number of clients at a potential rate.
In addition to it, the 2nd chart which shows the annual development in the Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Help overall properties, shows that the company is rather effective in including value to its assets through its revenues. The growth in possessions shows that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis concerning the circulation of overall revenues of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress 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 impacting the publishing sector in general and the Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might reduce the demand 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 E Change A Work In Progress Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a major concentrate on instructional publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Telegraph Media Group The Newspaper Is Dead Long Live The E Change A Work In Progress Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded 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 prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 organisation segments 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 along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an instant option to prevent the decreasing industry growth. Therefore, intro of digital publishing could prove to be an immediate service with low amount of danger for the company. However, the company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially gathers the data connected to the consumer need, the prospective markets, the government regulations and the data associated with the rivals provided in the market. After that, the company must choose one prospective section for its initial offering. It must collect research study that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business need to go for the preliminary offering. If the initial offering shows a success, the company must choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a hazard to the business's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
