Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Solution and Analysis
Introduction
Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing details and communication services. Major service sections of the company consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports and so on. Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Help has become a specialized details supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing market in general and Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Help in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Solution has particular strengths that can be made use of to minimize the threats, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong financial position allows the company to consider a number of development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Solution as well, however the growth could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business might also present 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 minimize its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has postured specific dangers to Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular techniques like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market together with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual overall incomes of Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a big number of consumers at a possible rate.
Along with it, the 2nd graph which reveals the yearly development in the Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Analysis overall possessions, shows that the business is rather effective in including worth to its properties through its revenues. The development in properties reveals that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to the circulation of overall profits of the company. Major part of the revenues 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 development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out informative products and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Analysis consists of the concerns of environmental communities over the use 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Teva Pharmaceutical Industries Ltd Dvd 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an instant service to prevent the decreasing market development. Intro of digital publishing could prove to be an immediate service with low quantity of danger for the business. Nevertheless, the company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business ought to first gathers the data associated with the customer need, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the company ought to decide one possible section for its preliminary offering. It ought to collect research study that how it might separate its digital publishing from the existing rivals' products. After all the steps above the business must go for the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, however the circumstance can be managed by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
