West Teleservices Going Public Case Study Solution and Analysis
Intro
West Teleservices Going Public Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing details and interaction services. Major organisation sections of the business include; books, periodicals, consultancy and circulation. The company has a large product portfolio and its major items include books, periodicals, online media, exhibits, research reports etc. West Teleservices Going Public Case Study Analysis has actually become a specialized info company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, West Teleservices Going Public Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be used 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
West Teleservices Going Public Case Study Analysis has specific strengths that can be made use of to decrease the risks, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of West Teleservices Going Public Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong monetary position permits the business to think about several advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase constraints for the company in executing its development program. The weak points of West Teleservices Going Public Case Study Solution 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 must propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting West Teleservices Going Public Case Study Analysis as well, but the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned certain risks to West Teleservices Going Public Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of West Teleservices Going Public Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual total profits of West Teleservices Going Public Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in bring in a large number of consumers at a potential rate.
Along with it, the 2nd graph which shows the yearly development in the West Teleservices Going Public Case Study Analysis overall properties, reveals that the business is quite effective in adding worth to its properties through its revenues. The growth in assets reveals that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the circulation of total earnings of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the efficiency of the company and the recent trends 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 could have a considerable impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting West Teleservices Going Public Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the West Teleservices Going Public Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies related to the import of books affect the general business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the West Teleservices Going Public Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet 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 innovation together with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting West Teleservices Going Public Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies 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 Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published documents is the files presented in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence 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 likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the West Teleservices Going Public Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of West Teleservices Going Public Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks third and second in various market sectors, with a significant concentrate on educational publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of West Teleservices Going Public Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the decreasing industry growth. Introduction of digital publishing might prove to be an instant solution with low amount of threat for the company. However, the business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially collects the data related to the consumer demand, the potential markets, the federal government policies and the information related to the competitors provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a risk to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
