Tesla Motors Inc Case Study Solution and Analysis
Introduction
Tesla Motors Inc Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing details and interaction services. Significant business sections of the company consist of; books, regulars, consultancy and distribution. The company has a large item portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Tesla Motors Inc Case Study Solution has ended up being a specialized info service provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Tesla Motors Inc Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement 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 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 Inc Case Study Help has particular strengths that can be made use of to lower the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Tesla Motors Inc Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong monetary position allows the company to consider several development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of Tesla Motors Inc Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company 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 particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Tesla Motors Inc Case Study Analysis as well, however the development might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has positioned particular threats to Tesla Motors Inc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Tesla Motors Inc Case Study Analysis due to the customer shift towards digital 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 competitors can gain a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry along with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be computed. The total financial performance of the company might be analyzed by using the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Tesla Motors Inc Case Study Solution is growing and the company is rather efficient in attracting a large number of clients at a prospective rate.
In addition to it, the second graph which reveals the annual development in the Tesla Motors Inc Case Study Solution overall assets, reveals that the company is quite efficient in including worth to its possessions through its revenues. The growth in possessions shows that the total worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis relating to the circulation of overall earnings of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading useful products and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the Tesla Motors Inc Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Tesla Motors Inc Case Study Help includes the issues of environmental 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations 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 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Tesla Motors Inc Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Tesla Motors Inc Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in different market segments, with a significant focus on academic publications. 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 could wean the market share of Tesla Motors Inc Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Tesla Motors Inc Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. Therefore, intro of digital publishing might show to be an immediate solution with low quantity of threat for the company. However, the business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first collects the information related to the consumer demand, the potential markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
