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Thuraya Satellite Telecommunications 2 Case Study Solution and Analysis


Introduction

Thuraya Satellite Telecommunications 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Important Issues

Although, Thuraya Satellite Telecommunications 2 Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These factors include;

• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
Executive Summary
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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Thuraya Satellite Telecommunications 2 Case Study Analysis has specific strengths that can be utilized to decrease the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;

• The long term experience of Thuraya Satellite Telecommunications 2 Case Study Help in the publishing market i.e. 60 years permits the business 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 benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position permits the company to consider several development chances with no fear of raising fund externally.

Weak points

Together with the strengths, the company has certain weak points which could increase restraints for the business in executing its development program. The weaknesses of Thuraya Satellite Telecommunications 2 Case Study Analysis are provided as follows;

• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing industry is decreasing because 2008, impacting Thuraya Satellite Telecommunications 2 Case Study Solution also, however the growth might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;

• The company could also introduce 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 lower its dependence over Chinese markets by using its large funds.

Risks

The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned specific risks to Thuraya Satellite Telecommunications 2 Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Thuraya Satellite Telecommunications 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
The business has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be determined. However, the general monetary performance of the company might be evaluated by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Thuraya Satellite Telecommunications 2 Case Study Solution is growing and the business is rather efficient in drawing in a a great deal of consumers at a prospective rate.

In addition to it, the 2nd graph which shows the yearly development in the Thuraya Satellite Telecommunications 2 Case Study Analysis total properties, reveals that the business is quite effective in including value to its properties through its incomes. The development in properties reveals that the total worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).

Another financial analysis of the company utilizing the given data could be the analysis concerning the distribution of overall incomes of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible development to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis could be performed to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting Thuraya Satellite Telecommunications 2 Case Study Analysis service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.

Social and Demographical.

The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.

Technological.

Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Thuraya Satellite Telecommunications 2 Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.

Market Analysis (Porter's 5 Forces Design).

Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.

Danger of New Entrants.

Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.

Risk of Replacement.

Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of substitution for the market.

Competitive Rivalry.

Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Thuraya Satellite Telecommunications 2 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.

Competitors Analysis.

CMP runs in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Thuraya Satellite Telecommunications 2 Case Study Analysis consist of;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a major focus on instructional publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Thuraya Satellite Telecommunications 2 Case Study Help quickly in the present market situation.

Posts and telecommunication Press (PTP).

It was likewise founded in the exact same duration as Thuraya Satellite Telecommunications 2 Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• 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 focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its products 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 competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an instant service to prevent the decreasing industry development. For that reason, intro of digital publishing could prove to be an immediate option with low amount of danger for the company. Nevertheless, the business might also think about the growth program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the customer need, the potential markets, the government policies and the data related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.

Conclusion

The growth of the publishing industry is decreasing because 2008, showing a danger to the company's long term existence, but the scenario can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.

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