Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Solution and Analysis
Intro
Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing market in basic and Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Analysis in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement 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 Case Study Solution has particular strengths that can be used to reduce the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the business to consider a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Help too, but the development might be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has postured specific hazards to Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market in addition to presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual total incomes of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is rather effective in bring in a big number of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the annual growth in the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Solution total properties, shows that the business is quite efficient in adding value to its properties through its profits. The development in properties reveals that the overall value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis concerning the circulation of total revenues of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Analysis company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous 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 Design).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on certain sites. The altering consumer choices towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 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 provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Titan Products Inc Acquisition Of Franz Schuler Gmbh B 1 Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the declining market growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must initially collects the information related to the consumer demand, the prospective markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a risk to the company's long term existence, but the situation can be controlled by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
