Telus Capital Structure Management Case Study Solution and Analysis
Telus Capital Structure Management Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Telus Capital Structure Management Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Telus Capital Structure Management Case Study Help has particular strengths that can be utilized to reduce the dangers, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Telus Capital Structure Management Case Study Solution in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position allows the business to think about a number of advancement chances without any fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase restrictions for the company in executing its development program. The weak points of Telus Capital Structure Management Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth plans to avoid its reliance over the Chinese markets to attain long term development.
The development of the publishing market is declining because 2008, impacting Telus Capital Structure Management Case Study Solution as well, however the growth could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific threats to Telus Capital Structure Management Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Telus Capital Structure Management Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market in addition to existence of high competition increases the risk of losing the customer base.
The company has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be determined. The total monetary efficiency of the business might be evaluated by utilizing the graphs offered 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 development rate, showing that the annual need of the products of Telus Capital Structure Management Case Study Solution is growing and the company is rather effective in bring in a large number of customers at a prospective cost.
In addition to it, the 2nd graph which shows the yearly growth in the Telus Capital Structure Management Case Study Help overall assets, shows that the business is rather effective in adding worth to its possessions through its profits. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of overall revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective growth to achieve its future development objective.
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect 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. Therefore, it might be said that the general political forces affecting Telus Capital Structure Management Case Study Help organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Telus Capital Structure Management Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies related to the import of books impact the general organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out helpful materials and so on. China has the highest population in the world with a high population development, showing the increasing number of customers of the Telus Capital Structure Management Case Study Help. However, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Telus Capital Structure Management Case Study Help 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 harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the documents provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Telus Capital Structure Management Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 market saturation, the purchasers requires high quality files at competitive rates.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Telus Capital Structure Management Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Telus Capital Structure Management Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing market development. Therefore, introduction of digital publishing might show to be an instant option with low quantity of threat for the company. Nevertheless, the business might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business needs to first collects the information related to the consumer need, the possible markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term presence, however the situation can be managed 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 prevent the danger of failure for entryway in the new markets.