Transatlantic Holdings Inc The Belle Of The Ball Case Study Solution and Analysis
Intro
Transatlantic Holdings Inc The Belle Of The Ball Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing market in general and Transatlantic Holdings Inc The Belle Of The Ball Case Study Help in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 company 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
Transatlantic Holdings Inc The Belle Of The Ball Case Study Help has specific strengths that can be made use of to reduce the threats, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Transatlantic Holdings Inc The Belle Of The Ball Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position allows the business to consider several advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Transatlantic Holdings Inc The Belle Of The Ball Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting Transatlantic Holdings Inc The Belle Of The Ball Case Study Help also, however the development could be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has positioned specific hazards to Transatlantic Holdings Inc The Belle Of The Ball Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Transatlantic Holdings Inc The Belle Of The Ball Case Study Help due to the customer shift towards virtual 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 rivals can get a strong customer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be determined. The general monetary performance of the business might be evaluated by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Transatlantic Holdings Inc The Belle Of The Ball Case Study Help is growing and the business is quite effective in drawing in a a great deal of clients at a possible price.
Along with it, the 2nd graph which reveals the yearly growth in the Transatlantic Holdings Inc The Belle Of The Ball Case Study Help total properties, shows that the company is rather efficient in including worth to its assets through its incomes. The development in properties shows that the overall value of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the circulation of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a possible growth to attain its future development goal.
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 company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the overall political forces affecting Transatlantic Holdings Inc The Belle Of The Ball Case Study Help company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading helpful materials and so on. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Transatlantic Holdings Inc The Belle Of The Ball Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing might decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Transatlantic Holdings Inc The Belle Of The Ball Case Study Help consists of 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 non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Transatlantic Holdings Inc The Belle Of The Ball Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Transatlantic Holdings Inc The Belle Of The Ball Case Study Solution 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing market with a yearly total 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
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an instant option to avoid the declining market growth. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer need, the potential markets, the government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a threat to the company's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.
