Temaseks Offer To Buy Olam International Case Study Solution and Analysis
Introduction
Temaseks Offer To Buy Olam International Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing information and interaction services. Significant company sections of the company include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items consist of books, periodicals, online media, exhibits, research reports etc. Temaseks Offer To Buy Olam International Case Study Solution has actually become a specialized details company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Temaseks Offer To Buy Olam International Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Temaseks Offer To Buy Olam International Case Study Solution has particular strengths that can be made use of to reduce the risks, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Temaseks Offer To Buy Olam International Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position allows the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restraints for the business in implementing its development program. The weaknesses of Temaseks Offer To Buy Olam International Case Study Help are offered as follows;
• Despite of being a science and innovation 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 development. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Temaseks Offer To Buy Olam International Case Study Help too, however the development could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned particular threats to Temaseks Offer To Buy Olam International Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Temaseks Offer To Buy Olam International Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual overall revenues of Temaseks Offer To Buy Olam International Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is rather efficient in bring in a big number of consumers at a prospective cost.
In addition to it, the second graph which reveals the annual development in the Temaseks Offer To Buy Olam International Case Study Analysis total possessions, reveals that the business is rather efficient in including value to its properties through its profits. The development in properties reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the circulation of total profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Temaseks Offer To Buy Olam International Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the general organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful materials etc. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the Temaseks Offer To Buy Olam International Case Study Analysis. However, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Temaseks Offer To Buy Olam International Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the documents presented in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the threat of replacement for the market.
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 rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Temaseks Offer To Buy Olam International Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Temaseks Offer To Buy Olam International Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Temaseks Offer To Buy Olam International Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
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 accomplish its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to avoid the declining industry growth. For that reason, introduction of digital publishing might prove to be an instant solution with low quantity of danger for the company. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first gathers the information related to the customer demand, the prospective markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, showing a danger to the company's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
