Tesla Motors 9 Case Study Solution and Analysis
Tesla Motors 9 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering information, processing details and interaction services. Significant service segments of the business include; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant products include books, regulars, online media, exhibits, research reports etc. Tesla Motors 9 Case Study Analysis has become a specialized information service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Tesla Motors 9 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Tesla Motors 9 Case Study Help has certain strengths that can be made use of to reduce the dangers, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Tesla Motors 9 Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position permits the company to consider numerous advancement chances without any worry of raising fund externally.
Along with the strengths, the business has specific weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Tesla Motors 9 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
The development of the publishing market is declining since 2008, impacting Tesla Motors 9 Case Study Help as well, however the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competitors in the publishing industry has presented particular hazards to Tesla Motors 9 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Tesla Motors 9 Case Study Help due to the consumer shift towards virtual 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 customer base by utilizing specific methods like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the risk of losing the consumer base.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly overall revenues of Tesla Motors 9 Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in drawing in a large number of customers at a potential rate.
Together with it, the 2nd graph which shows the yearly development in the Tesla Motors 9 Case Study Analysis total properties, reveals that the company is quite efficient in including value to its possessions through its earnings. The growth in possessions shows that the total value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis regarding the circulation of total incomes of the company. Major part of the revenues 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 prospective growth to accomplish its future development objective.
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Tesla Motors 9 Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the documents presented in the virtual libraries on certain sites. The changing customer choices towards digital learning increase the danger of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence 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 marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Tesla Motors 9 Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Tesla Motors 9 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in different market sectors, with a major focus on educational publications. CIP serves 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 might wean the market share of Tesla Motors 9 Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate option to prevent the decreasing market growth. For that reason, introduction of digital publishing might prove to be an immediate service with low amount of danger for the company. The company might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to first collects the data related to the customer demand, the possible markets, the federal government regulations and the information related to the rivals presented 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.
Although, the growth of the publishing market is decreasing since 2008, revealing a threat to the business's long term presence, however the circumstance can be managed by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.