Temaseks Offer To Buy Olam International 2 Case Study Solution and Analysis
Temaseks Offer To Buy Olam International 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing info and interaction services. Major service sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports etc. Temaseks Offer To Buy Olam International 2 Case Study Analysis has ended up being a specialized information provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Temaseks Offer To Buy Olam International 2 Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns 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 abilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Temaseks Offer To Buy Olam International 2 Case Study Solution has particular strengths that can be used to minimize the risks, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Temaseks Offer To Buy Olam International 2 Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position allows the business to consider a number of advancement chances without any fear of raising fund externally.
In addition to the strengths, the business has particular weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Temaseks Offer To Buy Olam International 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing industry is declining because 2008, impacting Temaseks Offer To Buy Olam International 2 Case Study Analysis too, but the development could be revived by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competition in the publishing market has postured particular risks to Temaseks Offer To Buy Olam International 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Temaseks Offer To Buy Olam International 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
Due to lack of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual overall profits of Temaseks Offer To Buy Olam International 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in bring in a big number of customers at a prospective cost.
Together with it, the second graph which reveals the annual development in the Temaseks Offer To Buy Olam International 2 Case Study Solution overall assets, shows that the business is rather effective in including worth to its assets through its incomes. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the distribution of total revenues 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 business could move towards other business segments with a prospective growth to attain its future development objective.
PESTEL analysis might be conducted to learn the various external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Temaseks Offer To Buy Olam International 2 Case Study Analysis company 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 Temaseks Offer To Buy Olam International 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the general company at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental forces impacting Temaseks Offer To Buy Olam International 2 Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry 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 providers of the Temaseks Offer To Buy Olam International 2 Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive market 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 rivals of Temaseks Offer To Buy Olam International 2 Case Study Analysis consist of;.
• Chemical Market 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 could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Temaseks Offer To Buy Olam International 2 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an instant service to prevent the decreasing market growth. For that reason, introduction of digital publishing could show to be an immediate option with low amount of threat for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should initially gathers the information related to the customer need, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining since 2008, revealing a threat to the business's long term presence, however the scenario can be controlled by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.