Tesla Motors 9 Case Study Solution and Analysis
Intro
Tesla Motors 9 Case Study Solution 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 supplier and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Tesla Motors 9 Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company 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
Tesla Motors 9 Case Study Analysis has specific strengths that can be utilized to minimize the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Tesla Motors 9 Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position enables the company to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase restrictions for the company in executing its advancement program. The weak points of Tesla Motors 9 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company 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 ought to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, affecting Tesla Motors 9 Case Study Analysis too, but the development might be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has posed specific risks to Tesla Motors 9 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Tesla Motors 9 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. The overall monetary efficiency of the company could be examined by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Tesla Motors 9 Case Study Analysis is growing and the business is quite efficient in bring in a large number of customers at a prospective cost.
Together with it, the second graph which shows the annual development in the Tesla Motors 9 Case Study Analysis overall possessions, shows that the company is rather efficient in adding worth to its properties through its earnings. The growth in possessions reveals that the total worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the distribution of total incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a potential growth to accomplish 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 current trends 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 might have a significant effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Tesla Motors 9 Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative products etc. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Tesla Motors 9 Case Study Help. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Tesla Motors 9 Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the digital libraries on certain sites. The altering customer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Tesla Motors 9 Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Tesla Motors 9 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP easily in the existing market circumstance.
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 6th in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant solution to prevent the declining industry growth. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the data related to the consumer demand, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a danger to the company's long term existence, however the circumstance can be managed by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
