Tracy Chan We Need To Talk Case Study Solution and Analysis
Introduction
Tracy Chan We Need To Talk Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and Tracy Chan We Need To Talk Case Study Solution in particular. These elements consist of;
• 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 improvement of the macro markets have raised a number of 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 utilized to pursue the future advancement 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 Case Study Solution has specific strengths that can be used to minimize the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Tracy Chan We Need To Talk Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong financial position allows the business to consider a number of development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase constraints for the company in implementing its development program. The weak points of Tracy Chan We Need To Talk Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining because 2008, affecting Tracy Chan We Need To Talk Case Study Solution too, however the growth could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has positioned specific threats to Tracy Chan We Need To Talk Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Tracy Chan We Need To Talk Case Study Help due to the consumer shift towards digital 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 acquire a strong customer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be determined. The total financial efficiency of the company might be examined by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Tracy Chan We Need To Talk Case Study Analysis is growing and the company is quite efficient in attracting a large number of customers at a prospective rate.
Together with it, the 2nd graph which shows the annual growth in the Tracy Chan We Need To Talk Case Study Help overall properties, shows that the company is quite efficient in including worth to its properties through its incomes. The development in assets reveals that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis regarding the circulation of total earnings of the company. Huge part of the incomes 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 business segments with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces impacting Tracy Chan We Need To Talk Case Study Analysis company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful products and so on. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Tracy Chan We Need To Talk Case Study Analysis. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Tracy Chan We Need To Talk Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Tracy Chan We Need To Talk Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Tracy Chan We Need To Talk Case Study Analysis consist of;.
• 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 could wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Tracy Chan We Need To Talk Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item 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 segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining market growth. The business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must initially collects the data associated with the customer demand, the prospective markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the company should choose one potential segment for its initial offering. It must gather research that how it might distinguish its digital publishing from the existing competitors' products. After all the actions above the business need to go for the initial offering. The company should go for the other markets if the initial offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a hazard to the company's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
