Tenova Mining For Growth In Economic Crisis 2 Case Study Solution and Analysis
Intro
Tenova Mining For Growth In Economic Crisis 2 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 details provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Tenova Mining For Growth In Economic Crisis 2 Case Study Help has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation 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 valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tenova Mining For Growth In Economic Crisis 2 Case Study Analysis has certain strengths that can be used to reduce the hazards, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Tenova Mining For Growth In Economic Crisis 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its development program. The weaknesses of Tenova Mining For Growth In Economic Crisis 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, impacting Tenova Mining For Growth In Economic Crisis 2 Case Study Solution too, but the growth could be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has posed certain threats to Tenova Mining For Growth In Economic Crisis 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Tenova Mining For Growth In Economic Crisis 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market along with existence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. The total monetary efficiency of the company could be analyzed by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Tenova Mining For Growth In Economic Crisis 2 Case Study Help is growing and the company is rather efficient in drawing in a large number of consumers at a potential rate.
Along with it, the second chart which shows the annual growth in the Tenova Mining For Growth In Economic Crisis 2 Case Study Help overall possessions, reveals that the business is rather effective in including value to its possessions through its revenues. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the distribution of total earnings of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces impacting Tenova Mining For Growth In Economic Crisis 2 Case Study Solution organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful materials and so on. China has the highest population in the world with a high population development, revealing the increasing number of customers of the Tenova Mining For Growth In Economic Crisis 2 Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Tenova Mining For Growth In Economic Crisis 2 Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized 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 approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the danger of alternative 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 likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Tenova Mining For Growth In Economic Crisis 2 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Tenova Mining For Growth In Economic Crisis 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks third and second in numerous market sectors, with a significant focus on educational publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Tenova Mining For Growth In Economic Crisis 2 Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Tenova Mining For Growth In Economic Crisis 2 Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the declining industry development. Introduction of digital publishing could show to be an immediate option with low amount of risk for the company. Nevertheless, the business could likewise consider 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 customer need, the prospective markets, the federal government guidelines and the information associated with the rivals presented in the market. After that, the company should choose one potential sector for its initial offering. It needs to collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the business need to go for the preliminary offering. If the preliminary offering proves a success, the business ought to opt for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, revealing a danger to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
