Tiger Trend Case Study Solution and Analysis
Tiger Trend Case Study Analysis 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 details and interaction services. Significant service segments of the business consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Tiger Trend Case Study Analysis has become a specialized details service provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Tiger Trend Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation 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 situation? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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 utilized to lower the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Tiger Trend Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the business to consider numerous development opportunities with no worry of raising fund externally.
Together with the strengths, the company has particular weak points which could increase restrictions for the business in implementing its advancement program. The weak points of Tiger Trend Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is decreasing since 2008, affecting Tiger Trend Case Study Solution also, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented certain threats to Tiger Trend Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Tiger Trend Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the consumer base.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. However, the total financial performance of the company could be examined by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Tiger Trend Case Study Solution is growing and the business is quite efficient in bring in a a great deal of consumers at a prospective cost.
Together with it, the 2nd chart which shows the annual development in the Tiger Trend Case Study Help total properties, shows that the business is quite efficient in including value to its assets through its incomes. The growth in properties reveals that the overall value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the distribution of total earnings of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a potential development to accomplish its future advancement goal.
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Tiger Trend Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading useful products and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the Tiger Trend Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting Tiger Trend 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 non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal guidelines 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 first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry 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 competition for CMP.
Bargaining Power of Provider.
The significant providers of the Tiger Trend Case Study Analysis include the suppliers 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 provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 rates.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Tiger Trend Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competition 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 business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company require an immediate option to avoid the declining industry growth. Intro of digital publishing might prove to be an immediate service with low amount of risk for the company. The company might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first gathers the information related to the consumer demand, the possible markets, the government regulations and the information connected to the rivals presented in the market. After that, the company must choose one possible section for its preliminary offering. It needs to gather research study that how it could separate its digital publishing from the existing rivals' items. The steps above the business ought to go for the preliminary offering. If the initial offering shows a success, the company needs to choose the other markets. In this method the business would have the ability to execute its digital publishing program.
The development of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.