Urban Brand And Tsg Capital Group Llc Case Study Solution and Analysis
Intro
Urban Brand And Tsg Capital Group Llc Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Urban Brand And Tsg Capital Group Llc Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Urban Brand And Tsg Capital Group Llc Case Study Solution has specific strengths that can be utilized to decrease the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Urban Brand And Tsg Capital Group Llc Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position enables the business to consider several development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Urban Brand And Tsg Capital Group Llc Case Study Solution are offered 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 must propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Urban Brand And Tsg Capital Group Llc Case Study Analysis as well, but the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has positioned particular threats to Urban Brand And Tsg Capital Group Llc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Urban Brand And Tsg Capital Group Llc Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with existence of high competition increases the risk of losing the client base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be computed. However, the overall financial performance of the business might be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Urban Brand And Tsg Capital Group Llc Case Study Analysis is growing and the business is quite efficient in bring in a large number of consumers at a potential price.
Together with it, the second chart which shows the annual growth in the Urban Brand And Tsg Capital Group Llc Case Study Analysis total assets, reveals that the business is rather effective in adding value to its possessions through its incomes. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the given data could be the analysis regarding the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces impacting Urban Brand And Tsg Capital Group Llc Case Study Analysis company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative materials and so on. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Urban Brand And Tsg Capital Group Llc Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Urban Brand And Tsg Capital Group Llc Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed 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 concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Urban Brand And Tsg Capital Group Llc Case Study Help include 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Urban Brand And Tsg Capital Group Llc Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors 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 company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business need an immediate service to prevent the declining market growth. For that reason, intro of digital publishing could prove to be an immediate service with low quantity of danger for the company. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should initially collects the information related to the customer need, the possible markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, revealing a threat to the company's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
