Thumbs Up Video Inc Case Study Solution and Analysis
Intro
Thumbs Up Video Inc Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing details and communication services. Major service sections of the business consist of; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. Thumbs Up Video Inc Case Study Help has actually become a specialized info provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Thumbs Up Video Inc Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of concerns 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 company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Thumbs Up Video Inc Case Study Help has particular strengths that can be utilized to lower the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Thumbs Up Video Inc Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position permits the company to consider a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Thumbs Up Video Inc Case Study Solution 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 extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining given that 2008, impacting Thumbs Up Video Inc Case Study Solution as well, but the growth could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific hazards to Thumbs Up Video Inc Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Thumbs Up Video Inc Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be determined. The total monetary performance of the company could be analyzed by utilizing the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Thumbs Up Video Inc Case Study Analysis is growing and the company is rather efficient in drawing in a a great deal of customers at a prospective rate.
Along with it, the second graph which shows the annual growth in the Thumbs Up Video Inc Case Study Analysis overall possessions, shows that the business is rather effective in adding value to its possessions through its earnings. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the distribution of overall revenues of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful products etc. China has the greatest population on the planet with a high population development, revealing the increasing number of consumers of the Thumbs Up Video Inc Case Study Solution. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Thumbs Up Video Inc Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal 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 Five Forces Model might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on specific sites. The changing customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Thumbs Up Video Inc Case Study Solution consist of the providers 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 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 market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Thumbs Up Video Inc Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company require an immediate service to avoid the decreasing industry development. Introduction of digital publishing could prove to be an instant solution with low amount of risk for the company. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the customer demand, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a danger to the company's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
