Tracy Chan We Need To Talk 2 Case Study Solution and Analysis
Intro
Tracy Chan We Need To Talk 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Tracy Chan We Need To Talk 2 Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tracy Chan We Need To Talk 2 Case Study Solution has particular strengths that can be used to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Tracy Chan We Need To Talk 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the business to think about several advancement chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of Tracy Chan We Need To Talk 2 Case Study Help are offered 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 certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Tracy Chan We Need To Talk 2 Case Study Analysis also, but the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured particular hazards to Tracy Chan We Need To Talk 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Tracy Chan We Need To Talk 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total earnings of Tracy Chan We Need To Talk 2 Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite effective in bring in a large number of clients at a possible price.
In addition to it, the 2nd graph which shows the annual development in the Tracy Chan We Need To Talk 2 Case Study Solution overall properties, shows that the company is quite effective in adding worth to its properties through its revenues. The development in assets shows that the total value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis relating to the circulation of total earnings of the business. Huge part of the revenues of CMP comes 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 prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A quick 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 the people 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. Therefore, it could be stated that the general political forces impacting Tracy Chan We Need To Talk 2 Case Study Analysis organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings 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.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Tracy Chan We Need To Talk 2 Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable 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 policies 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 entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Tracy Chan We Need To Talk 2 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Tracy Chan We Need To Talk 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a major concentrate on educational publications. CIP serves as a risk 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 Tracy Chan We Need To Talk 2 Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 service sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant service to avoid the decreasing market development. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first gathers the data connected to the customer need, the prospective markets, the government guidelines and the information related to the competitors provided in the market. After that, the company ought to choose one possible sector for its preliminary offering. It must gather research study that how it might separate its digital publishing from the existing rivals' products. The steps above the company need to go for the preliminary offering. If the initial offering proves a success, the business ought to opt 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 declining since 2008, showing a threat to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
