New Tianma Printing Ltd ( Ntm ) Essay

New Tianma Printing Ltd ( Ntm ) Essay

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New Tianma Printing Ltd (NTM) was founded in 1998 in the city of Tianjin, northern China. It is an envelope manufacturing company that supplies State owned Banks and local commercial banks. It has several suppliers of Paper and printing films in the region. NTM has been in this industry for 20 years and it’s a reliable organization for printing large volume of envelopes.

NTM has no power over price of its paper supply and so is a price taker. Also, it has no control over volume of its sales because it is determined by the buyers which is the postal office in the region.
NTM solely depends on its operational activities in making revenue and meeting the market demand.

This research covers the market competency and core competency of NTM and the resources that brings about its current capabilities as it profits and strategies against competitors in the China Market.

GENERAL ENVIRONMENT
POLITICAL
1. There are plans by the Chinese government to reduce pollution and modernize the industry. “In May 2010, authorities announced plans to close 4.32 million tonnes of paper and board and non-wood pulp capacity by the fourth quarter of this year, a huge increase from the origi¬nal goal of 530,000 tonnes set out just a couple of months ago.” (Lu, 2010).
The recently announced policy will help shut down polluting mills in China. The implication of this policy is a shift in demand for paper and writing material, which will increase the cost for paper.

2. Provincial governments in china are already raising the minimum wage of its workers and the central governments is considering plans to equalize that rate (Kennedy, 2014). The move is to improve the lives of the poorest citizens who have been left behind since the steady in economy. The sit...


... middle of paper ...


... buyers
Buyers are few and they buy alot at once. They can influence the price at which they want to buy because they have alternative suppliers of envelope in the industries. They have control over the delivery time and places penalties on default services. Buyers are keen to high quality and right quantity.

4. Availability of substitutes
The available substitute to envelope is electronic mail. Assuming the customers are getting younger, they tend to use electronic mail instead of envelopes. This will reduce the volume of envelopes ordered in the future.


5. Competitive Rivalry
This is high barrier to exist because the machines are expensive and the return rate of investment is high. There is a steady growth in the industry and so competitors compete fiercely on volume of supply and since it’s almost an oligopoly market, there is an unwritten agreement on price.

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