Travelling Thai Ltd 2 Case Study Solution and Analysis
Intro
Travelling Thai Ltd 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Travelling Thai Ltd 2 Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Travelling Thai Ltd 2 Case Study Analysis has particular strengths that can be used to minimize the hazards, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Travelling Thai Ltd 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the business to think about several development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Travelling Thai Ltd 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Travelling Thai Ltd 2 Case Study Solution also, but the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has postured particular hazards to Travelling Thai Ltd 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Travelling Thai Ltd 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. Nevertheless, the general monetary performance of the business could be evaluated by using the charts given up the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Travelling Thai Ltd 2 Case Study Analysis is growing and the business is rather effective in attracting a large number of consumers at a possible price.
In addition to it, the second graph which shows the yearly growth in the Travelling Thai Ltd 2 Case Study Solution total assets, reveals that the company is quite efficient in adding worth to its properties through its incomes. The growth in possessions shows that the overall value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given data might be the analysis concerning the circulation of total incomes of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Travelling Thai Ltd 2 Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the overall service at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Travelling Thai Ltd 2 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs 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 managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published documents is the documents presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Travelling Thai Ltd 2 Case Study Solution include the suppliers of the paper for publishing files. 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 Purchaser.
Negotiating power of buyer 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 buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Travelling Thai Ltd 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant solution to prevent the declining industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the customer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a threat to the company's long term presence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
