Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Solution and Analysis
Introduction
Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Solution in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised several questions 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 used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Analysis has specific strengths that can be used to reduce the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position enables the company to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Analysis as well, but the development could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned certain hazards to Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be determined. The general financial efficiency of the business might be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Analysis is growing and the business is rather efficient in drawing in a a great deal of clients at a potential price.
In addition to it, the 2nd graph which shows the annual growth in the Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Solution overall properties, shows that the business is rather efficient in adding value to its possessions through its profits. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis regarding the circulation of total profits of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
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 extremely monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Analysis service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Help includes the issues 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 used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on certain sites. The altering consumer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
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 competitors of Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in various market sectors, with a major focus on academic publications. CIP acts as a hazard 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 Tennant Company Can Chemical Free Be A Pathway To Competitive Advantage Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant option to avoid the declining industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the information related to the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, showing a threat to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
