Tencent Copying To Success Case Study Solution and Analysis
Introduction
Tencent Copying To Success Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and Tencent Copying To Success Case Study Solution in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business 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
Tencent Copying To Success Case Study Solution has specific strengths that can be made use of to reduce the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Tencent Copying To Success Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the company to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase constraints for the company in implementing its development program. The weak points of Tencent Copying To Success Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, 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 development. It should propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Tencent Copying To Success Case Study Solution as well, however the growth could be revived by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually posed specific hazards to Tencent Copying To Success Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Tencent Copying To Success Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of data, the financial ratios of CMP might not be calculated. However, the overall monetary efficiency of the business might be evaluated by using the graphs given up the case Appendices. It could be analyzed from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Tencent Copying To Success Case Study Help is growing and the company is quite efficient in attracting a a great deal of consumers at a possible price.
In addition to it, the second graph which shows the yearly growth in the Tencent Copying To Success Case Study Analysis total assets, reveals that the company is quite effective in adding worth to its possessions through its profits. The development in assets shows that the overall value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis relating to the distribution of total revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the company 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 could have a considerable impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the general political forces affecting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Tencent Copying To Success Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Tencent Copying To Success Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized 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 Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the virtual libraries on specific sites. The altering consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry 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 competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Tencent Copying To Success Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors 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 greatest market share in the Chinese publishing market. Major competitors of Tencent Copying To Success Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in various market sections, with a significant concentrate on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Tencent Copying To Success Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Tencent Copying To Success Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with an annual total revenues 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 chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should first gathers the information related to the consumer demand, the potential markets, the government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a danger to the company's long term existence, but the scenario can be managed by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
