The Tzu Chi Foundations China Relief Mission 2 Case Study Solution and Analysis
Introduction
The Tzu Chi Foundations China Relief Mission 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and The Tzu Chi Foundations China Relief Mission 2 Case Study Analysis in specific. These factors consist of;
• Entrance 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 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 situation? Do the long important experience, technical resources and the capabilities of the company could be utilized 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
The Tzu Chi Foundations China Relief Mission 2 Case Study Solution has certain strengths that can be utilized to decrease the threats, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Tzu Chi Foundations China Relief Mission 2 Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position enables the company to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase restraints for the company in implementing its advancement program. The weak points of The Tzu Chi Foundations China Relief Mission 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting The Tzu Chi Foundations China Relief Mission 2 Case Study Help as well, but the development might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has posed particular hazards to The Tzu Chi Foundations China Relief Mission 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of The Tzu Chi Foundations China Relief Mission 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. The general monetary efficiency of the company could be evaluated by utilizing the charts provided in the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of The Tzu Chi Foundations China Relief Mission 2 Case Study Help is growing and the company is quite effective in attracting a a great deal of consumers at a potential price.
Along with it, the second graph which shows the yearly growth in the The Tzu Chi Foundations China Relief Mission 2 Case Study Help total properties, reveals that the company is quite effective in adding value to its assets through its incomes. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis concerning the circulation of total earnings of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the The Tzu Chi Foundations China Relief Mission 2 Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books impact the total business at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting The Tzu Chi Foundations China Relief Mission 2 Case Study Solution includes 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 used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. 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 major providers of the The Tzu Chi Foundations China Relief Mission 2 Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal 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 market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Tzu Chi Foundations China Relief Mission 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as The Tzu Chi Foundations China Relief Mission 2 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate service to prevent the declining industry growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should first gathers the data related to the consumer demand, the prospective markets, the federal government regulations and the information connected to the competitors presented in the market. After that, the business must decide one potential section for its initial offering. It should gather research study that how it could separate its digital publishing from the existing competitors' items. The steps above the company should go for the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
