Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Solution and Analysis
Introduction
Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering details, processing info and interaction services. Major organisation sectors of the company consist of; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports etc. Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Solution has ended up being a specialized details provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help has particular strengths that can be utilized to minimize the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the company to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which might increase restrictions for the company in executing its advancement program. The weak points of Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining considering that 2008, affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help as well, but the development could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed certain dangers to Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total earnings of Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential price.
Along with it, the 2nd chart which shows the yearly growth in the Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Analysis total assets, reveals that the company is quite effective in including worth to its possessions through its profits. The development in properties reveals that the total worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis relating to the circulation of total earnings of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Solution includes the concerns of ecological communities 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 ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract 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.
Hazard of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in numerous market segments, with a significant focus on academic publications. CIP functions 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 Titan Products Inc Acquisition Of Franz Schuler Gmbh A 2 Case Study Help quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. Introduction of digital publishing might prove to be an immediate solution with low amount of risk for the business. The company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to initially collects the information related to the customer demand, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows 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
Although, the development of the publishing industry is declining given that 2008, showing a risk to the company's long term presence, but the scenario can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
