Tianlong Company And The Toxic Capsule Scandal 2 Case Study Solution and Analysis
Intro
Tianlong Company And The Toxic Capsule Scandal 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing information and interaction services. Major company sections of the company include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Tianlong Company And The Toxic Capsule Scandal 2 Case Study Help has ended up being a specialized information provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Tianlong Company And The Toxic Capsule Scandal 2 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 business could be utilized 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
Tianlong Company And The Toxic Capsule Scandal 2 Case Study Solution has particular strengths that can be used to reduce the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Tianlong Company And The Toxic Capsule Scandal 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position allows the company to consider numerous development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase constraints for the company in implementing its advancement program. The weak points of Tianlong Company And The Toxic Capsule Scandal 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting Tianlong Company And The Toxic Capsule Scandal 2 Case Study Solution as well, but the development might be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured certain dangers to Tianlong Company And The Toxic Capsule Scandal 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Tianlong Company And The Toxic Capsule Scandal 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market together with existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the annual total revenues of Tianlong Company And The Toxic Capsule Scandal 2 Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in attracting a large number of customers at a potential rate.
Together with it, the second chart which shows the yearly growth in the Tianlong Company And The Toxic Capsule Scandal 2 Case Study Help total possessions, shows that the company is quite efficient in adding value to its possessions through its revenues. The development in assets shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis relating to the distribution of total incomes of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Tianlong Company And The Toxic Capsule Scandal 2 Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Tianlong Company And The Toxic Capsule Scandal 2 Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. 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 total service at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Tianlong Company And The Toxic Capsule Scandal 2 Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition 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 rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Tianlong Company And The Toxic Capsule Scandal 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market 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 an extremely competitive market with the presence 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 Tianlong Company And The Toxic Capsule Scandal 2 Case Study Analysis consist of;.
• Chemical Market 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 could wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
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 advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining market development. Intro of digital publishing could show to be an instant solution with low amount of risk for the business. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to first collects the data connected to the consumer demand, the prospective markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the business needs to decide one potential section for its initial offering. It ought to collect research that how it could distinguish its digital publishing from the existing competitors' products. After all the actions above the company need to choose the initial offering. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a threat to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
