Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Solution and Analysis
Introduction
Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing market in basic and Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Analysis in specific. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 capabilities of the company could be made use of 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
Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Help has specific strengths that can be made use of to decrease the hazards, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position permits the business to consider a number of development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its development program. The weak points of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Analysis as well, but the development could be revived by availing particular chances provided in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific risks to Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual overall revenues of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential rate.
Together with it, the 2nd graph which reveals the annual development in the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Solution overall properties, shows that the business is quite efficient in adding value to its possessions through its incomes. The growth in properties reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the circulation of total profits of the business. Huge 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 business sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Analysis business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Along with it, the financial policies related to the import of books affect the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding 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 gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry 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 competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market segments, with a major focus on educational publications. 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 might wean the market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 2 Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant option to avoid the decreasing industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the data connected to the customer need, the prospective markets, the federal government policies and the information associated with the competitors provided in the market. After that, the company should decide one possible sector for its initial offering. It must collect research study that how it might separate its digital publishing from the existing competitors' items. The steps above the company should go for the initial offering. If the preliminary offering shows a success, the company must opt for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a risk to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
