Tesla Motors A Financing Growth Case Study Solution and Analysis
Intro
Tesla Motors A Financing Growth 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 thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and Tesla Motors A Financing Growth Case Study Help in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business 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 A Financing Growth Case Study Help has specific strengths that can be made use of to reduce the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Tesla Motors A Financing Growth Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position permits the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which could increase constraints for the business in executing its advancement program. The weak points of Tesla Motors A Financing Growth Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Tesla Motors A Financing Growth Case Study Solution as well, but the growth might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned particular risks to Tesla Motors A Financing Growth Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Tesla Motors A Financing Growth Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with existence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. The general financial performance of the business might be analyzed by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Tesla Motors A Financing Growth Case Study Solution is growing and the company is rather effective in bring in a large number of clients at a prospective rate.
Together with it, the second chart which shows the annual development in the Tesla Motors A Financing Growth Case Study Analysis total assets, reveals that the business is quite efficient in adding worth to its assets through its profits. The development in assets shows that the total value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis concerning the circulation of overall incomes of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Tesla Motors A Financing Growth Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved 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 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of 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. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on 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 Provider.
The significant suppliers of the Tesla Motors A Financing Growth Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Tesla Motors A Financing Growth Case Study Analysis 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 might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 terms of company scale. It is also among the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business 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 accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an immediate service to avoid the decreasing industry growth. Introduction of digital publishing could prove to be an instant service with low quantity of risk for the company. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information associated with the customer need, the possible markets, the government policies and the information connected to the rivals provided in the market. After that, the business must choose one possible segment for its initial offering. It must gather research that how it might separate its digital publishing from the existing competitors' items. After all the steps above the company need to choose the preliminary offering. If the preliminary offering proves a success, the business should choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a threat to the business's long term presence, but the scenario can be controlled by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
