Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Solution and Analysis
Intro
Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change 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 utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help has particular strengths that can be utilized to minimize the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong monetary position permits the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, impacting Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help also, but the development might be restored by availing particular opportunities presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented particular threats to Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry together with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It might be analyzed from the Appendix III that the yearly total profits of Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in bring in a large number of consumers at a potential cost.
Along with it, the 2nd graph which reveals the annual development in the Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Analysis overall properties, reveals that the business is rather effective in including worth to its possessions through its earnings. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis concerning the circulation of overall earnings of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Solution company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials etc. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help. However, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall 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 a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Tesla Motors In 2013 Will Sparks Fly In The Automobile Industry Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close rival 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 organisation scale. It is likewise one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant option to avoid the decreasing market development. Introduction of digital publishing could show to be an instant solution with low amount of danger for the business. The business could also 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 must first collects the data related to the customer demand, the prospective markets, the government regulations and the data associated with the rivals provided in the market. After that, the company must decide one prospective section for its initial offering. It needs to gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the steps above the business must opt for the preliminary offering. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a hazard to the business's long term existence, however the scenario can be controlled by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
