Telus Capital Structure Management 2 Case Study Solution and Analysis
Intro
Telus Capital Structure Management 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing info and interaction services. Significant organisation sectors of the business include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its major products include books, periodicals, online media, exhibitions, research study reports etc. Telus Capital Structure Management 2 Case Study Solution has actually ended up being a specialized information provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Telus Capital Structure Management 2 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entrance 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 technology.
The improvement of the macro markets have raised numerous concerns 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 capabilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Telus Capital Structure Management 2 Case Study Analysis has particular strengths that can be used to reduce the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Telus Capital Structure Management 2 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position allows the company to consider a number of development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which could increase restrictions for the company in implementing its development program. The weak points of Telus Capital Structure Management 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Telus Capital Structure Management 2 Case Study Analysis as well, but the development might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented particular threats to Telus Capital Structure Management 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Telus Capital Structure Management 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly total earnings of Telus Capital Structure Management 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in bring in a big number of customers at a possible rate.
Together with it, the 2nd chart which shows the yearly development in the Telus Capital Structure Management 2 Case Study Help total properties, shows that the company is rather efficient in including worth to its possessions through its profits. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the distribution of overall earnings of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Telus Capital Structure Management 2 Case Study Solution organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are moving 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 impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Telus Capital Structure Management 2 Case Study Analysis consists of the concerns of environmental 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Telus Capital Structure Management 2 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Telus Capital Structure Management 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product 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 organisation segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with 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 business need an instant option to avoid the decreasing industry development. Intro of digital publishing could prove to be an immediate service with low amount of threat for the company. However, the company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first gathers the information related to the customer need, the potential markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, showing a hazard to the company's long term existence, but the circumstance can be controlled by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
