Tiger Trend Case Study Solution and Analysis
Tiger Trend Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information company and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Tiger Trend Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Tiger Trend Case Study Help has specific strengths that can be used to decrease the risks, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Tiger Trend Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the company to think about numerous advancement chances without any worry of raising fund externally.
Along with the strengths, the company has certain weak points which could increase constraints for the business in implementing its development program. The weak points of Tiger Trend Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is decreasing considering that 2008, impacting Tiger Trend Case Study Help as well, but the development might be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured specific dangers to Tiger Trend Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Tiger Trend Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the customer base.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. Nevertheless, the total financial performance of the company might be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Tiger Trend Case Study Solution is growing and the company is quite effective in drawing in a large number of consumers at a potential price.
Along with it, the 2nd graph which shows the yearly growth in the Tiger Trend Case Study Solution overall possessions, shows that the business is quite efficient in adding value to its assets through its revenues. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis concerning the circulation of total profits of the business. Major 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 business could move towards other organisation segments with a possible growth to attain its future advancement objective.
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the total political forces impacting Tiger Trend Case Study Help business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Tiger Trend Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the general company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products etc. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Tiger Trend Case Study Analysis. However, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental forces impacting Tiger Trend Case Study Help 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 utilized while publishing should not be damaging for the environment.
Legal policies 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 authorized initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers 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 also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Tiger Trend Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 needs high quality files at competitive costs.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Tiger Trend Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a major concentrate on academic publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Tiger Trend Case Study Solution quickly in the present market scenario.
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 terms of organisation scale. It is also among the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the decreasing market growth. The business could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information related to the customer demand, the potential markets, the federal government policies and the data associated with the competitors provided in the market. After that, the company should decide one potential sector for its preliminary offering. It ought to collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company should choose the preliminary offering. The business needs to go for the other markets if the initial offering proves a success. In this method the business would be able to execute its digital publishing program.
The growth of the publishing market is declining considering that 2008, showing a risk to the company's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.