Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Solution and Analysis
Intro
Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Solution 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 strategies
• 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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for 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 Case Study Help has certain strengths that can be utilized to reduce the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position allows the business to think about several development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restraints for the company in implementing its development program. The weak points of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, 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 ought to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing since 2008, affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Analysis as well, however the development could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has presented particular dangers to Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be computed. The overall financial performance of the business could be examined by utilizing the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of consumers at a possible cost.
In addition to it, the 2nd graph which reveals the yearly development in the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help overall possessions, shows that the business is rather efficient in including worth to its possessions through its incomes. The growth in assets reveals that the overall worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis regarding the circulation of total profits of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the business and the recent trends 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 considerable influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the overall company at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help includes the concerns of environmental neighborhoods 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 should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the virtual libraries on certain sites. The changing customer choices towards digital knowing increase the hazard of substitution for the market.
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 rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. However, the business 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 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in various market sections, with a significant concentrate on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Titan Products Inc Acquisition Of Franz Schuler Gmbh B 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the declining market development. Therefore, intro of digital publishing might prove to be an immediate option with low amount of threat for the business. The business could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to first collects the data related to the consumer demand, the potential markets, the government policies and the information connected to the competitors presented in the market. After that, the company must decide one potential sector for its preliminary offering. It must gather research study that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the business need to choose the initial offering. If the initial offering shows a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a danger to the business's long term presence, however the situation can be controlled by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
