Telus Capital Structure Management Case Study Solution and Analysis
Introduction
Telus Capital Structure Management Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing information and interaction services. Significant service segments of the company include; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its major products include books, regulars, online media, exhibits, research study reports etc. Telus Capital Structure Management Case Study Help has actually become a specialized details company and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and Telus Capital Structure Management Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Telus Capital Structure Management Case Study Solution has certain strengths that can be made use of to reduce the dangers, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Telus Capital Structure Management Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position enables the business to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its development program. The weak points of Telus Capital Structure Management Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Telus Capital Structure Management Case Study Help as well, but the development might be revived by availing certain chances provided in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured certain threats to Telus Capital Structure Management Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Telus Capital Structure Management Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. However, the general financial efficiency of the business could be analyzed by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Telus Capital Structure Management Case Study Help is growing and the business is quite efficient in bring in a large number of consumers at a possible rate.
Together with it, the 2nd chart which reveals the annual growth in the Telus Capital Structure Management Case Study Analysis overall assets, shows that the company is quite efficient in adding worth to its assets through its earnings. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis regarding the distribution of total incomes of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the company and the current trends 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 substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Telus Capital Structure Management Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books impact the total company at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Telus Capital Structure Management Case Study Solution consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the files presented in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Telus Capital Structure Management Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the company 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).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks third and second in various market segments, with a major focus on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Telus Capital Structure Management Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.
Recommendations
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 suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing market growth. Introduction of digital publishing might prove to be an immediate option with low amount of threat for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company ought to initially collects the information related to the consumer demand, the possible markets, the government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, but the situation can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
