Tethia Lungmeng Making Stone From Paper Case Study Solution and Analysis
Introduction
Tethia Lungmeng Making Stone From Paper Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Tethia Lungmeng Making Stone From Paper Case Study Help in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation 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 circumstance? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tethia Lungmeng Making Stone From Paper Case Study Analysis has specific strengths that can be utilized to decrease the risks, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Tethia Lungmeng Making Stone From Paper Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong monetary position enables the company to consider numerous development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase restraints for the company in executing its development program. The weak points of Tethia Lungmeng Making Stone From Paper Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, 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 should propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, impacting Tethia Lungmeng Making Stone From Paper Case Study Analysis as well, however the growth could be restored by availing specific chances provided in the market. The market chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has postured certain threats to Tethia Lungmeng Making Stone From Paper Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Tethia Lungmeng Making Stone From Paper Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly overall profits of Tethia Lungmeng Making Stone From Paper Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in bring in a large number of customers at a potential price.
In addition to it, the 2nd chart which reveals the annual growth in the Tethia Lungmeng Making Stone From Paper Case Study Analysis overall properties, shows that the company is rather effective in adding value to its assets through its revenues. The growth in assets reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the distribution of overall earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Tethia Lungmeng Making Stone From Paper Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall service at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Tethia Lungmeng Making Stone From Paper Case Study Solution includes the issues of ecological communities 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 ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the virtual libraries on specific sites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence 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, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Tethia Lungmeng Making Stone From Paper Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Tethia Lungmeng Making Stone From Paper Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a significant concentrate on academic publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Tethia Lungmeng Making Stone From Paper Case Study Analysis quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an instant solution to prevent the declining industry growth. Introduction of digital publishing could prove to be an instant solution with low quantity of danger for the company. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to first collects the data related to the customer need, the potential markets, the federal government policies and the data associated with the rivals provided in the market. After that, the company needs to decide one possible sector for its initial offering. It needs to gather research study that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company should opt for the preliminary offering. If the preliminary offering proves a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, revealing a danger to the business's long term existence, but the situation can be managed by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
