Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Solution and Analysis
Intro
Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing info and communication services. Major organisation segments of the company include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major items consist of books, regulars, online media, exhibitions, research reports etc. Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help has become a specialized information provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement 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 circumstance? Do the long important experience, technical resources and the capabilities 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 B 2 2 Case Study Solution has particular strengths that can be used to lower the dangers, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the company to consider numerous advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, 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 development. It must propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help also, but the growth might be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has posed certain risks to Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competition increases the danger of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall incomes of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is rather effective in bring in a large number of clients at a possible cost.
Along with it, the second graph which shows the yearly growth in the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Solution total assets, shows that the company is rather efficient in including value to its assets through its incomes. The development in properties shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the circulation of overall profits of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
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 Publicity Department of the Communist Party of China. Therefore, it could be stated that the overall political forces impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the overall service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Solution. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Analysis includes the issues 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 utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of 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 big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the files presented in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence 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, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider 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 purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. However, 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 B 2 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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).
It was likewise founded in the same period as Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an instant option to prevent the decreasing market development. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to first gathers the data related to the consumer demand, the potential markets, the government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a threat to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
