Thompson Asset Management Case Study Solution and Analysis
Intro
Thompson Asset Management Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering details, processing information and interaction services. Major company sectors of the business consist of; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Thompson Asset Management Case Study Help has become a specialized info company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Thompson Asset Management Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Thompson Asset Management Case Study Analysis has particular strengths that can be used to reduce the threats, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Thompson Asset Management Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position allows the business to consider numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restraints for the company in implementing its development program. The weak points of Thompson Asset Management Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining because 2008, affecting Thompson Asset Management Case Study Solution also, but the development could be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain hazards to Thompson Asset Management Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Thompson Asset Management Case Study Solution due to the consumer shift towards digital 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 competitors can acquire a strong customer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market along with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the overall monetary performance of the business could be analyzed by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Thompson Asset Management Case Study Solution is growing and the business is rather effective in drawing in a a great deal of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the annual growth in the Thompson Asset Management Case Study Analysis total possessions, reveals that the company is rather efficient in including worth to its possessions through its incomes. The growth in properties shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data might be the analysis concerning the distribution of overall incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces affecting Thompson Asset Management Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Thompson Asset Management Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books affect the total service at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices 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 consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Thompson Asset Management Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful 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.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Thompson Asset Management Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Thompson Asset Management Case Study Help consist of;.
• 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 could wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Thompson Asset Management Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product 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 business sections to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company need an instant service to avoid the declining industry development. Therefore, introduction of digital publishing could show to be an immediate service with low amount of threat for the company. The business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first gathers the data associated with the consumer need, the potential markets, the government regulations and the information associated with the competitors presented in the market. After that, the company ought to choose one potential sector for its initial offering. It must collect research that how it might distinguish its digital publishing from the existing competitors' items. The steps above the company ought to go for the preliminary offering. If the preliminary offering shows a success, the company must opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term presence, but the scenario can be controlled by considering a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
