Thompson Reuters Corporation - Case Study Example

7. Industrial Analysis (SPITE) Thompson Reuters Corporation Canada Social and Demographic Forces Any kind of business is established among the people. This means that the demand of their products directly depend on the population they serve and the social characteristics of this population. For instance the target customers must be in high population in the population. In addition, the products must be aligned with the socially acceptable standards and methods of presentation for the company to realize profits. 2. Political and Legal Considerations The company may face legal regulatory changes that will impact on the customers industries especially Financial and Risk business. In 2010, the US adopted the Fodd-Frank Act and other countries may adopt similar laws and regulations in the future. The legal and regulations changes may affect how the company provides products and services to its customers. The existing and proposed changes include changing the court interpretation of such legislations and regulations, may put limits on the collection of certain information and its use (Thompson Reuters Annual Report, 2013). Moreover, the tax law changes and their application uncertainty may affect the company’s results. Any change in the law of tax ruling will affect the company’s effective tax rate. In addition, it may also require adjustments to the company’s tax returns that were filed previously. This will have unfavorable outcome that may affect the company’s results. 3. International Environment The company’s performance is dependent on its customers’ financial health and strength. This depends on the North America, Latin America, Europe and Asia economies. The company operates in several countries all over the world and its earnings have to be taxed in several different jurisdictions with different rates. Due to the fiscal circumstances changes, the tax laws for the company may undergo an amendment by relevant authorities. The amendments may adversely affect the company’s results (Thompson Reuters Annual Report, 2013). 4. Technological Trends The current business environment is all about competition. The competitive ability of any company is dependent on their adjustment to changes in the internal and external environment. One factor that is currently changing is the technology in business. Thompson Reuters has a challenge in technology adoption. In as much as it is among the largest companies in the industry, their adoption of technology has been slow. This implies that their competitors may take advantage of this and this affects their market environment (Thompson Reuters Annual Report, 2013). 5. Economic Trends and Cycles The uncertainty and the changes in the economic conditions are a major influence in the legal industry. The financial situation of the clients being served by a company determines how well they will receive the products and services from the company. The situation has led to a consideration by the company to reduce the cost for legal services. In addition, the tax and Accounting business, funding delays, economic uncertainty and pressures for reducing the client’s expenditures have resulted to some customers, including government customers and individuals to delay signing of legal agreements and this causes undue extension of sale’s cycle (Thompson Reuters Annual Report, 2013). 8. Complete SWOT Analysis Thompson Reuters Corporation Strengths (Thompson Reuters Corporation SWOT Analysis, 2012). Its market position is strong, which gives the company competitive advantage The company’s contribution from other recurring businesses is significant and this makes the company’s operations stable The company’s boasts of a diversified products portfolio and has a good geographic presence Weaknesses (Thompson Reuters Corporation SWOT Analysis, 2012) The company has several litigation issues that influence the confidence of the investors negatively. The company has no proper method of managing costs to align with the financial changes in the customers. This affects the profit margins. The company has not fully adopted new technologies, which affects its competitive advantage Opportunities (Thompson Reuters Corporation SWOT Analysis, 2012) The growth strategy of the company, strategic acquisition increases its relevance in the changing markets. The company has government agencies as clients which improves its reception of information and boost the clients’ confidence. The wide coverage of the company increases its chances to continuously grow and establish in new markets. Threats (Thompson Reuters Corporation SWOT Analysis, 2012) There is an intense market competition in the industry which threaten the company’s position and market share. The growth in usage of online information sources that are free may have adverse effects on demand for company’s products and services. Regulations in the industry are frequently changing causing uncertainty in the future profitability and earning of the company. Bloomberg L.P SWOT Analysis Strengths (Bloomberg L.P SWOT Analysis, 2014). The company’s position in the market is already established and it is very dominant in the financial information system. Its presence across a variety of digital platforms is quite strong. Its products and services portfolio is quite wide. Weaknesses (Bloomberg L.P SWOT Analysis, 2014). The company activities fully exposes it to the legacy media which adversely affects its reputation. The scandals in the company’s privacy affects the confidence of clients negatively. The company lacks a proper mechanism to handle internal conflicts thus getting overtly exposed to clients and competitors. This affects its reputation. Opportunities (Bloomberg L.P SWOT Analysis, 2014). The growth in the US capital market activities increases the demand for the company’s products and services. The amount of online content being consumed is steadily growing There is room for global expansion especially in the Asian markets that are emerging. Threats (Bloomberg L.P SWOT Analysis, 2014). There are many alternatives emerging for the financial information services that threaten the market stability The whole industry of magazine production is experiencing negative trends which makes future profitability and sustainability uncertain. The internal conflicts threaten the sustainability of the company’s success. 9. Positioning Map of Consumer Attributes/ Characteristics Financial For a company, its financial status is very important to customers as it enables them to be sure that the company they have chosen to provide them with the needed service is in a good financial status and it is not facing bankruptcy. Consumer’s Relations New consumers will always observe for the experiences and responses from the current consumers. A company that maintains a good relationship with its customers wins their loyalty and enhances expansion of the customer base. Corporate Social responsibility How well a company merges with the community and how it helps them in improving their own lives is an attribute that is considered by the customers in making choices. Customers will associate with a company that identifies with them and help them. Compliance with Regulations A company that is compliant with regulations wins the confidence of the public from whom its customers come. This increase in confidence makes the customers willing to entrust their businesses and issues with the company. Science The type of science used by a company is an important attribute. Consumers need a company that has proper scientific information to aid publishers, corporations, governments, and academia and law firms in discovering, developing and delivering innovations (Thompson Reuters Annual Report, 2013). Global Growth The company’s global growth is very important because the customers need a company that has a local presence in different regions and countries where there are great growth opportunities. Worldwide Operations How the company operates is important to the customers. This is because the company is meant to operate across different business units in order to combine global capabilities for the sole benefit of its customers (Thompson Reuters Annual Report, 2013). Read More