Temaseks Offer To Buy Olam International 2 Case Study Solution and Analysis
Introduction
Temaseks Offer To Buy Olam International 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and Temaseks Offer To Buy Olam International 2 Case Study Solution in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change 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 valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Temaseks Offer To Buy Olam International 2 Case Study Help has certain strengths that can be utilized to minimize the dangers, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Temaseks Offer To Buy Olam International 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position allows the company to consider numerous advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Temaseks Offer To Buy Olam International 2 Case Study Solution are given 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 extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining since 2008, affecting Temaseks Offer To Buy Olam International 2 Case Study Help as well, however the growth could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has positioned specific risks to Temaseks Offer To Buy Olam International 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Temaseks Offer To Buy Olam International 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual overall earnings of Temaseks Offer To Buy Olam International 2 Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is quite effective in drawing in a big number of consumers at a possible rate.
Together with it, the second graph which reveals the annual growth in the Temaseks Offer To Buy Olam International 2 Case Study Solution overall properties, shows that the company is rather effective in including worth to its assets through its earnings. The development in properties reveals that the total value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis regarding the circulation of total incomes of the company. Huge 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 sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered 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 government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting Temaseks Offer To Buy Olam International 2 Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Temaseks Offer To Buy Olam International 2 Case Study Help in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books impact the overall service at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Temaseks Offer To Buy Olam International 2 Case Study Help. However, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Temaseks Offer To Buy Olam International 2 Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Temaseks Offer To Buy Olam International 2 Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence 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 Temaseks Offer To Buy Olam International 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, 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 sectors, with a significant focus on academic publications. CIP functions as a risk 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 marketplace share of Temaseks Offer To Buy Olam International 2 Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation 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: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• 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 concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate solution to avoid the decreasing industry growth. The company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should initially collects the data related to the consumer demand, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a threat to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
