Tesla Motors Evaluating A Growth Company Case Study Solution and Analysis
Intro
Tesla Motors Evaluating A Growth Company Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Tesla Motors Evaluating A Growth Company Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of questions 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 abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tesla Motors Evaluating A Growth Company Case Study Help has particular strengths that can be used to decrease the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Tesla Motors Evaluating A Growth Company Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the business to think about numerous development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase restraints for the company in implementing its development program. The weaknesses of Tesla Motors Evaluating A Growth Company Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard 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 achieve long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, affecting Tesla Motors Evaluating A Growth Company Case Study Solution as well, but the development might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually postured certain hazards to Tesla Motors Evaluating A Growth Company Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Tesla Motors Evaluating A Growth Company Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry together with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be determined. However, the general monetary performance of the business might be analyzed by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Tesla Motors Evaluating A Growth Company Case Study Solution is growing and the company is quite efficient in drawing in a a great deal of consumers at a prospective cost.
Together with it, the 2nd chart which shows the yearly growth in the Tesla Motors Evaluating A Growth Company Case Study Solution total possessions, reveals that the company is quite effective in including value to its possessions through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis concerning the distribution of overall incomes of the business. 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 company could move towards other service sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Tesla Motors Evaluating A Growth Company Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the overall organisation at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Tesla Motors Evaluating A Growth Company Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats 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 industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. 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 major suppliers of the Tesla Motors Evaluating A Growth Company Case Study Solution consist of the suppliers of the paper for releasing files. 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 Purchaser.
Haggling power of purchaser in the publishing market 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 prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Tesla Motors Evaluating A Growth Company Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Tesla Motors Evaluating A Growth Company Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an immediate option to prevent the declining market growth. Introduction of digital publishing might show to be an immediate option with low amount of threat for the business. However, the business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business must initially gathers the information related to the consumer demand, the potential markets, the federal government guidelines and the data connected to the competitors provided in the market. After that, the business ought to choose one possible sector for its preliminary offering. It must gather research that how it could distinguish its digital publishing from the existing competitors' products. The actions above the business should go for the preliminary offering. The company needs to go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a threat to the company's long term existence, however the circumstance can be managed by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
