Tempest Tech Incorporated Case Study Solution and Analysis
Introduction
Tempest Tech Incorporated Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Tempest Tech Incorporated Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several 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 utilized 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
Tempest Tech Incorporated Case Study Help has particular strengths that can be made use of to lower the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Tempest Tech Incorporated Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Tempest Tech Incorporated Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Tempest Tech Incorporated Case Study Help too, however the growth could be restored by availing particular chances provided in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain hazards to Tempest Tech Incorporated Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Tempest Tech Incorporated Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be computed. Nevertheless, the total monetary efficiency of the business might be analyzed by utilizing the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Tempest Tech Incorporated Case Study Analysis is growing and the business is quite effective in attracting a large number of clients at a prospective rate.
Together with it, the 2nd graph which shows the yearly development in the Tempest Tech Incorporated Case Study Analysis total properties, shows that the business is rather effective in including value to its assets through its incomes. The growth in possessions reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered information might be the analysis relating to the circulation of overall earnings of the business. 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 company could move towards other business segments with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting Tempest Tech Incorporated Case Study Help organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Tempest Tech Incorporated Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Tempest Tech Incorporated Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Tempest Tech Incorporated Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks third and second in various market segments, with a major concentrate on instructional publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Tempest Tech Incorporated Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business require an instant service to avoid the decreasing industry development. Introduction of digital publishing could show to be an immediate service with low quantity of threat for the business. Nevertheless, the company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should first collects the information associated with the consumer need, the prospective markets, the government policies and the data connected to the competitors provided in the market. After that, the company should choose one possible sector for its preliminary offering. It must collect research that how it could distinguish its digital publishing from the existing competitors' products. After all the actions above the company must go for the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a threat to the business's long term existence, however the circumstance 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 immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
