Tripit The Travelers Agent 2 Case Study Solution and Analysis
Introduction
Tripit The Travelers Agent 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing details and interaction services. Significant service sections of the business include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Tripit The Travelers Agent 2 Case Study Analysis has ended up being a specialized information company and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and Tripit The Travelers Agent 2 Case Study Help in specific. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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
Tripit The Travelers Agent 2 Case Study Analysis has certain strengths that can be utilized to decrease the dangers, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Tripit The Travelers Agent 2 Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position allows the company to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weak points of Tripit The Travelers Agent 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, affecting Tripit The Travelers Agent 2 Case Study Solution as well, but the development could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has positioned particular hazards to Tripit The Travelers Agent 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Tripit The Travelers Agent 2 Case Study Help due to the customer 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 rivals can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall incomes of Tripit The Travelers Agent 2 Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite effective in drawing in a big number of customers at a prospective rate.
In addition to it, the second graph which reveals the annual growth in the Tripit The Travelers Agent 2 Case Study Help overall possessions, shows that the company is quite effective in including worth to its properties through its profits. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the circulation of overall revenues of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Tripit The Travelers Agent 2 Case Study Analysis service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Tripit The Travelers Agent 2 Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. 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 organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading helpful products etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of customers of the Tripit The Travelers Agent 2 Case Study Help. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Tripit The Travelers Agent 2 Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Tripit The Travelers Agent 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Tripit The Travelers Agent 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a major concentrate on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Tripit The Travelers Agent 2 Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant solution to avoid the declining industry growth. The company could also 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 must first collects the data related to the consumer need, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a threat to the business's long term presence, however the circumstance can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
