Tokyo Electron Ltd 2 Case Study Solution and Analysis
Introduction
Tokyo Electron Ltd 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing details and communication services. Significant service segments of the company include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports and so on. Tokyo Electron Ltd 2 Case Study Solution has actually ended up being a specialized information supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing market in general and Tokyo Electron Ltd 2 Case Study Solution in particular. These elements include;
• Entryway 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 questions 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 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
Tokyo Electron Ltd 2 Case Study Solution has certain strengths that can be made use of to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Tokyo Electron Ltd 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position enables the company to consider a number of advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of Tokyo Electron Ltd 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Tokyo Electron Ltd 2 Case Study Analysis also, however the growth could be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has presented particular threats to Tokyo Electron Ltd 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Tokyo Electron Ltd 2 Case Study Solution due to the consumer 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 competitors can get a strong customer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It could be evaluated from the Appendix III that the yearly total earnings of Tokyo Electron Ltd 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in drawing in a big number of clients at a prospective price.
In addition to it, the second chart which reveals the annual growth in the Tokyo Electron Ltd 2 Case Study Solution total assets, shows that the business is quite efficient in adding value to its assets through its incomes. The development in assets reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis regarding the circulation of overall earnings of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the efficiency of the business and the current 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 substantial effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Tokyo Electron Ltd 2 Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the general organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading useful products and so on. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Tokyo Electron Ltd 2 Case Study Help. Nevertheless, the customer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Tokyo Electron Ltd 2 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Tokyo Electron Ltd 2 Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Tokyo Electron Ltd 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Tokyo Electron Ltd 2 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an instant service to avoid the decreasing industry development. Therefore, introduction of digital publishing might show to be an immediate service with low amount of danger for the company. The company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially gathers the information related to the customer need, the potential markets, the government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a risk to the business's long term presence, but the scenario can be managed by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
