Thailand A Concise Profile 2014 Case Study Solution and Analysis
Introduction
Thailand A Concise Profile 2014 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing details and communication services. Significant service sections of the business consist of; books, regulars, consultancy and circulation. The company has a vast item portfolio and its significant items include books, periodicals, online media, exhibits, research study reports and so on. Thailand A Concise Profile 2014 Case Study Solution has become a specialized info company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Thailand A Concise Profile 2014 Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 important experience, technical resources and the capabilities of the business 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
Thailand A Concise Profile 2014 Case Study Help has specific strengths that can be made use of to reduce the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Thailand A Concise Profile 2014 Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong financial position enables the business to consider a number of advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Thailand A Concise Profile 2014 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Thailand A Concise Profile 2014 Case Study Analysis also, but the growth could be revived by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has presented certain threats to Thailand A Concise Profile 2014 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Thailand A Concise Profile 2014 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be computed. The overall financial performance of the company could be examined by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Thailand A Concise Profile 2014 Case Study Analysis is growing and the business is quite efficient in bring in a a great deal of customers at a possible cost.
Along with it, the 2nd graph which shows the annual growth in the Thailand A Concise Profile 2014 Case Study Help total possessions, shows that the business is rather efficient in including worth to its properties through its profits. The development in possessions shows that the total worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis regarding the circulation of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the overall political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Thailand A Concise Profile 2014 Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the financial policies related to the import of books affect the total service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out useful materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Thailand A Concise Profile 2014 Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Thailand A Concise Profile 2014 Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Thailand A Concise Profile 2014 Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Thailand A Concise Profile 2014 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market segments, with a major focus on academic publications. CIP acts as a hazard 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 marketplace share of Thailand A Concise Profile 2014 Case Study Help 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 period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 organisation sectors to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining market growth. The business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to initially gathers the information associated with the customer need, the prospective markets, the federal government regulations and the data associated with the competitors provided in the market. After that, the company needs to choose one possible segment for its initial offering. It needs to collect research study that how it could differentiate its digital publishing from the existing rivals' items. The actions above the business must go for the preliminary offering. If the initial offering proves a success, the company ought to opt for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, revealing a threat to the company's long term existence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
