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 company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing info and interaction services. Significant company segments of the business include; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. The Tzu Chi Foundations China Relief Mission Case Study Help has become a specialized details supplier and a large comprehensive 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 Analysis has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
The Tzu Chi Foundations China Relief Mission Case Study Solution has particular strengths that can be made use of to decrease the hazards, get rid of the weak point and obtain the chances. 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 market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong financial position allows the company to consider several advancement opportunities without any worry of raising fund externally.
Together with the strengths, the company has certain weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of The Tzu Chi Foundations China Relief Mission Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing market is decreasing considering that 2008, affecting The Tzu Chi Foundations China Relief Mission Case Study Analysis as well, however the growth could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has postured specific dangers to The Tzu Chi Foundations China Relief Mission Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of The Tzu Chi Foundations China Relief Mission Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competition increases the threat of losing the customer base.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. The general financial performance of the company could be evaluated by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of The Tzu Chi Foundations China Relief Mission Case Study Help is growing and the company is quite effective in attracting a large number of consumers at a possible price.
Along with it, the 2nd chart which reveals the yearly growth in the The Tzu Chi Foundations China Relief Mission Case Study Help overall assets, shows that the business is rather effective in including worth to its assets through its incomes. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis concerning the distribution of overall incomes of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a possible development to achieve its future development goal.
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 short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the The Tzu Chi Foundations China Relief Mission Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the general business at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces impacting The Tzu Chi Foundations China Relief Mission Case Study Analysis consists of the concerns of ecological communities over the use 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 needs to not be harmful for the environment.
Legal regulations 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 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Tzu Chi Foundations China Relief Mission Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors 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).
CIP acts as a danger for CMP as it could 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The Tzu Chi Foundations China Relief Mission Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an immediate option to prevent the decreasing industry growth. For that reason, introduction of digital publishing could prove to be an instant service with low quantity of danger for the company. The company might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first collects the data connected to the consumer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the business must choose one prospective sector for its initial offering. It ought to gather research study that how it could separate its digital publishing from the existing rivals' products. After all the steps above the company should choose the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing because 2008, revealing a hazard to the business's long term presence, but the circumstance can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.