Tenmou The Angel Investment Group In Bahrain Case Study Solution and Analysis
Introduction
Tenmou The Angel Investment Group In Bahrain Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Tenmou The Angel Investment Group In Bahrain Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement 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 business could be utilized 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
Tenmou The Angel Investment Group In Bahrain Case Study Analysis has specific strengths that can be utilized to lower the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Tenmou The Angel Investment Group In Bahrain Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the business to consider numerous development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of Tenmou The Angel Investment Group In Bahrain Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Tenmou The Angel Investment Group In Bahrain Case Study Analysis as well, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has posed particular risks to Tenmou The Angel Investment Group In Bahrain Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Tenmou The Angel Investment Group In Bahrain Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be determined. Nevertheless, the overall monetary efficiency of the company could be evaluated by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Tenmou The Angel Investment Group In Bahrain Case Study Help is growing and the company is rather efficient in drawing in a a great deal of consumers at a prospective price.
Together with it, the 2nd graph which reveals the yearly growth in the Tenmou The Angel Investment Group In Bahrain Case Study Analysis overall possessions, reveals that the company is quite effective in including worth to its assets through its profits. The development in possessions reveals that the overall value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis concerning the circulation of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces impacting Tenmou The Angel Investment Group In Bahrain Case Study Analysis company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement 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 soon.
Environmental.
Environmental forces affecting Tenmou The Angel Investment Group In Bahrain Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous 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 Regulation 1997 needs the publishers to be approved initially 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 5 Forces Design).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing industry China. A quick 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 attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Tenmou The Angel Investment Group In Bahrain Case Study Solution consist of the providers of the paper for releasing files. 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 Purchaser.
Negotiating power of buyer 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 purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Tenmou The Angel Investment Group In Bahrain Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks second and third in different market sections, with a significant focus on academic publications. CIP acts as a risk 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 Tenmou The Angel Investment Group In Bahrain Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections 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 external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the declining market development. Therefore, introduction of digital publishing might show to be an immediate option with low quantity of threat for the company. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the data associated with the customer demand, the possible markets, the government policies and the data associated with the rivals provided in the market. After that, the company should choose one possible sector for its preliminary offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' products. After all the steps above the company should opt for the preliminary offering. If the initial offering shows a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a risk to the business's long term existence, however the situation can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
