Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Solution and Analysis
Introduction
Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing market in general and Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Solution in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 situation? Do the long important experience, technical resources and the abilities of the company could be used 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 In 2009 And The U S Auto Industry Case A Case Study Solution has particular strengths that can be used to reduce the risks, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position permits the business to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its advancement program. The weak points of Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Solution too, however the growth might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• 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 a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has presented particular threats to Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competition increases the danger of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual total profits of Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a potential rate.
Together with it, the second graph which reveals the yearly development in the Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Help total assets, reveals that the business is rather efficient in including worth to its assets through its incomes. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the distribution of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the overall political forces impacting Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Analysis service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful products etc. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Help. However, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Help includes 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 disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition 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. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Tesla Motors In 2009 And The U S Auto Industry Case A Case Study Help include;.
• 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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the decreasing industry development. Therefore, intro of digital publishing might prove to be an immediate solution with low quantity of threat for the company. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should initially collects the data associated with the customer need, the potential markets, the federal government policies and the information associated with the rivals presented in the market. After that, the business needs to choose one prospective sector for its initial offering. It should collect research study that how it might separate its digital publishing from the existing rivals' products. The steps above the company need to go for the preliminary offering. The business must go for the other markets if the preliminary offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a risk to the company's long term existence, but the situation can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
