Tesla Motors 3 Case Study Solution and Analysis
Intro
Tesla Motors 3 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and Tesla Motors 3 Case Study Help in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement 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 made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tesla Motors 3 Case Study Solution has certain strengths that can be made use of to decrease the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Tesla Motors 3 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position permits the business to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its development program. The weak points of Tesla Motors 3 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Tesla Motors 3 Case Study Solution also, however the development might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has presented specific dangers to Tesla Motors 3 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Tesla Motors 3 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall revenues of Tesla Motors 3 Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in bring in a large number of customers at a possible price.
In addition to it, the 2nd graph which shows the yearly growth in the Tesla Motors 3 Case Study Analysis total assets, shows that the company is rather efficient in adding value to its properties through its revenues. The growth in properties reveals that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis regarding the circulation of total revenues of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the efficiency of the company 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 might have a substantial impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate 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 needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Tesla Motors 3 Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable 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 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Tesla Motors 3 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Tesla Motors 3 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product 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 organisation sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an instant option to avoid the declining industry development. Introduction of digital publishing could prove to be an immediate option with low amount of threat for the company. However, the business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first gathers the information related to the customer demand, the potential markets, the government regulations and the data related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a risk to the business's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
