The Tzu Chi Foundations China Relief Mission Case Study Solution and Analysis
The Tzu Chi Foundations China Relief Mission Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing info and communication services. Major organisation sections of the business consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major products include books, periodicals, online media, exhibitions, research reports and so on. The Tzu Chi Foundations China Relief Mission Case Study Solution has actually ended up being a specialized information service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, The Tzu Chi Foundations China Relief Mission Case Study Help has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing market in general and CMP in specific. These elements include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions 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 abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
The Tzu Chi Foundations China Relief Mission Case Study Solution has specific strengths that can be utilized to reduce the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Tzu Chi Foundations China Relief Mission Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position allows the business to consider a number of advancement opportunities with no worry of raising fund externally.
Together with the strengths, the company has specific weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of The Tzu Chi Foundations China Relief Mission Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, 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 needs to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is declining because 2008, affecting The Tzu Chi Foundations China Relief Mission Case Study Help also, however the development might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned specific risks to The Tzu Chi Foundations China Relief Mission Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of The Tzu Chi Foundations China Relief Mission Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the customer base.
Due to absence of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of The Tzu Chi Foundations China Relief Mission Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is quite efficient in attracting a large number of clients at a prospective cost.
In addition to it, the second chart which shows the annual development in the The Tzu Chi Foundations China Relief Mission Case Study Help total properties, shows that the company is quite efficient in adding value to its assets through its revenues. The growth in properties shows that the total value of the company is also increasing with increasing the overall earnings. (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 business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential growth to attain its future advancement objective.
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect 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 Publicity Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces impacting The Tzu Chi Foundations China Relief Mission Case Study Solution organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the The Tzu Chi Foundations China Relief Mission Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies connected to the import of books affect the general business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful products etc. China has the greatest population worldwide with a high population development, revealing the increasing variety of consumers of the The Tzu Chi Foundations China Relief Mission Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting The Tzu Chi Foundations China Relief Mission Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Tzu Chi Foundations China Relief Mission Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP operates in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Tzu Chi Foundations China Relief Mission Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a significant concentrate on academic publications. CIP serves as a danger 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 The Tzu Chi Foundations China Relief Mission Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an immediate option to avoid the declining market development. Therefore, intro of digital publishing might show to be an immediate option with low quantity of risk for the company. The business might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially gathers the information related to the customer need, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, revealing a threat to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.