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Tough Guy 2 Case Study Solution and Analysis


Introduction

Tough Guy 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Crucial Issues

CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in general and Tough Guy 2 Case Study Help in specific. These aspects include;

• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
Executive Summary
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Tough Guy 2 Case Study Help has particular strengths that can be made use of to decrease the threats, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;

• The long term experience of Tough Guy 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong financial position enables the company to consider several advancement opportunities without any worry of raising fund externally.

Weak points

In addition to the strengths, the company has particular weaknesses which could increase restraints for the business in executing its advancement program. The weak points of Tough Guy 2 Case Study Analysis 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 growth. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing market is declining given that 2008, affecting Tough Guy 2 Case Study Help as well, but the development could be revived by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;

• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.

Threats

The changing macro trends in the market and increasing competition in the publishing industry has posed specific hazards to Tough Guy 2 Case Study Analysis consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Tough Guy 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry in addition to presence of high competition increases the risk of losing the client base.

Monetary Analysis.
Swot Analysis
Due to absence of information, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total incomes of Tough Guy 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather efficient in bring in a large number of customers at a possible rate.

Along with it, the 2nd graph which reveals the yearly development in the Tough Guy 2 Case Study Help total assets, shows that the business is quite efficient in adding value to its properties through its revenues. The development in properties shows that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).

Another financial analysis of the business using the given data might be the analysis regarding the circulation of total earnings of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a potential growth to achieve its future development goal.

PESTEL Analysis

PESTEL analysis might be conducted to find out the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant effect on the state of mind of the people 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 Celebration of China. For that reason, it might be said that the overall political forces affecting Tough Guy 2 Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market.

Social and Demographical.

The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.

Technological.

Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces impacting Tough Guy 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 needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.

Market Analysis (Porter's Five Forces Design).

Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.

Threat of New Entrants.

Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.

Danger of Alternative.

Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the hazard of substitution for the market.

Competitive Rivalry.

Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The major providers of the Tough Guy 2 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Bargaining power of purchaser in the publishing market 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 files at competitive prices.

Rivals Analysis.

CMP operates in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Tough Guy 2 Case Study Help consist of;.

• 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 might wean the market share of CMP easily in the current market situation.

Posts and telecommunication Press (PTP).

It was likewise established in the exact same duration as Tough Guy 2 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.

Cons

• Competition 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 demand of its products in the market.

Suggestions

As the preferences are shifting towards digital publishing and the company require an instant option to avoid the declining industry growth. The company could also consider the growth program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the company should initially collects the data related to the customer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing industry is decreasing because 2008, revealing a danger to the company's long term existence, but the situation can be controlled by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.

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