Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Solution and Analysis
Introduction
Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing info and interaction services. Significant organisation sections of the business include; books, regulars, consultancy and distribution. The company has a huge product portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports and so on. Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Solution has become a specialized info provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 company could be made use of to strive for the future development 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 C Case Study Help has certain strengths that can be utilized to minimize the hazards, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position allows the company to consider a number of development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase restrictions for the business in implementing its development program. The weaknesses of Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Analysis as well, but the growth could be revived by availing specific opportunities provided 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 might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has presented particular dangers to Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be determined. However, the overall monetary efficiency of the business could be examined by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Solution is growing and the company is quite efficient in bring in a large number of customers at a possible price.
In addition to it, the second chart which shows the yearly growth in the Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Solution overall possessions, shows that the company is quite effective in adding value to its possessions through its revenues. The growth in possessions reveals that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis relating to the distribution of total incomes of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame 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 Celebration of China. It might be said that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading helpful materials etc. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh C Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. 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 C Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect 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: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an instant service to avoid the declining market development. Introduction of digital publishing could show to be an instant solution with low quantity of threat for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company ought to first collects the information related to the customer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a risk to the business's long term existence, however the circumstance can be managed by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
