Twilight Acre Farms Limited 2 Case Study Solution and Analysis
Intro
Twilight Acre Farms Limited 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and Twilight Acre Farms Limited 2 Case Study Help in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of 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 capabilities of the business could be utilized 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
Twilight Acre Farms Limited 2 Case Study Help has particular strengths that can be used to minimize the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Twilight Acre Farms Limited 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the company to consider a number of development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Twilight Acre Farms Limited 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, affecting Twilight Acre Farms Limited 2 Case Study Solution too, but the growth could be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has actually presented particular risks to Twilight Acre Farms Limited 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Twilight Acre Farms Limited 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be computed. The general financial efficiency of the business could be examined by utilizing the graphs given in the case Appendices. It could be evaluated 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 yearly need of the items of Twilight Acre Farms Limited 2 Case Study Solution is growing and the company is quite efficient in attracting a a great deal of clients at a prospective price.
Together with it, the second graph which shows the annual development in the Twilight Acre Farms Limited 2 Case Study Help total properties, shows that the company is quite effective in including worth to its assets through its revenues. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the distribution of total revenues of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting Twilight Acre Farms Limited 2 Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
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 satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Twilight Acre Farms Limited 2 Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Twilight Acre Farms Limited 2 Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market 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 competitors of Twilight Acre Farms Limited 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market segments, with a major focus on academic publications. CIP functions as a hazard 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 Twilight Acre Farms Limited 2 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Twilight Acre Farms Limited 2 Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate option to prevent the declining market growth. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of risk for the business. The business could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the customer need, the prospective markets, the federal government regulations and the information related to the competitors presented in the market. If the preliminary 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
Although, the growth of the publishing industry is declining given that 2008, showing a risk to the company's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
