Texas Teachers And The New Texas Way Case Study Solution and Analysis
Introduction
Texas Teachers And The New Texas Way Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Texas Teachers And The New Texas Way Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns 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 pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Texas Teachers And The New Texas Way Case Study Analysis has specific strengths that can be used to lower the risks, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Texas Teachers And The New Texas Way Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the business to think about several advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which might increase constraints for the company in implementing its development program. The weaknesses of Texas Teachers And The New Texas Way Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Texas Teachers And The New Texas Way Case Study Analysis as well, but the development might be revived by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually presented specific risks to Texas Teachers And The New Texas Way Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Texas Teachers And The New Texas Way Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly overall revenues of Texas Teachers And The New Texas Way Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite efficient in attracting a large number of clients at a prospective cost.
Along with it, the 2nd chart which reveals the yearly growth in the Texas Teachers And The New Texas Way Case Study Solution overall possessions, shows that the company is rather efficient in including value to its possessions through its incomes. The development in assets shows that the total value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of total profits of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the performance of the company and the recent 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 effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the total political forces impacting Texas Teachers And The New Texas Way Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Texas Teachers And The New Texas Way Case Study Help 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 combine effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general business at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out helpful materials etc. China has the highest population in the world with a high population development, showing the increasing variety of customers of the Texas Teachers And The New Texas Way Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Texas Teachers And The New Texas Way Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled 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 Design).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on specific websites. The changing consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Texas Teachers And The New Texas Way Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Texas Teachers And The New Texas Way Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks third and second in numerous market segments, with a major focus on instructional publications. CIP serves 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 might wean the market share of Texas Teachers And The New Texas Way Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Texas Teachers And The New Texas Way Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors 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 company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market development. Therefore, intro of digital publishing could show to be an instant solution with low quantity of threat for the business. However, the business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first collects the information associated with the customer demand, the possible markets, the government guidelines and the information connected to the competitors presented in the market. After that, the business needs to decide one potential section for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing rivals' items. After all the actions above the business must go for the initial offering. If the preliminary offering proves a success, the company should choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a threat to the company's long term presence, however the scenario can be managed by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
