Transmilenio The Battle Over Avenida Septima Case Study Solution and Analysis
Introduction
Transmilenio The Battle Over Avenida Septima Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Transmilenio The Battle Over Avenida Septima Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Transmilenio The Battle Over Avenida Septima Case Study Solution has certain strengths that can be used to minimize the risks, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Transmilenio The Battle Over Avenida Septima Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position enables the business to think about numerous development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Transmilenio The Battle Over Avenida Septima Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting Transmilenio The Battle Over Avenida Septima Case Study Analysis as well, but the growth could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually presented specific hazards to Transmilenio The Battle Over Avenida Septima Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Transmilenio The Battle Over Avenida Septima Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly total profits of Transmilenio The Battle Over Avenida Septima Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is quite efficient in bring in a big number of customers at a prospective price.
Together with it, the second chart which shows the annual development in the Transmilenio The Battle Over Avenida Septima Case Study Solution overall properties, reveals that the company is quite efficient in adding value to its properties through its revenues. The growth in properties shows that the total worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis concerning the distribution of overall profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset 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 Celebration of China. It might be said that the general political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Transmilenio The Battle Over Avenida Septima Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the overall service at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Transmilenio The Battle Over Avenida Septima Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the virtual libraries on particular sites. The altering customer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Transmilenio The Battle Over Avenida Septima Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry 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 Transmilenio The Battle Over Avenida Septima Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a major concentrate on instructional publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Transmilenio The Battle Over Avenida Septima Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Transmilenio The Battle Over Avenida Septima Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an instant service to prevent the declining market growth. Intro of digital publishing might show to be an instant option with low amount of risk for the business. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first collects the data related to the customer demand, the prospective markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term existence, however the scenario can be controlled by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
