Balancing The Power Equation Suzlon Energy Limited Case Study Solution and Analysis
Intro
Balancing The Power Equation Suzlon Energy Limited Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Balancing The Power Equation Suzlon Energy Limited Case Study Analysis in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 situation? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Balancing The Power Equation Suzlon Energy Limited Case Study Solution has particular strengths that can be used to decrease the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Balancing The Power Equation Suzlon Energy Limited Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position permits the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase constraints for the business in implementing its development program. The weaknesses of Balancing The Power Equation Suzlon Energy Limited Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, affecting Balancing The Power Equation Suzlon Energy Limited Case Study Help also, however the growth might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has posed particular threats to Balancing The Power Equation Suzlon Energy Limited Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Balancing The Power Equation Suzlon Energy Limited Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain methods like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. However, the general financial performance of the company could be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Balancing The Power Equation Suzlon Energy Limited Case Study Solution is growing and the business is rather efficient in attracting a a great deal of clients at a prospective cost.
Together with it, the 2nd chart which reveals the yearly development in the Balancing The Power Equation Suzlon Energy Limited Case Study Analysis total properties, shows that the company is rather effective in including value to its possessions through its incomes. The development in properties shows that the overall value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the circulation of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Balancing The Power Equation Suzlon Energy Limited Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the general business at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative materials and so on. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Balancing The Power Equation Suzlon Energy Limited Case Study Solution. Nevertheless, the customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Balancing The Power Equation Suzlon Energy Limited Case Study Help consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the documents presented in the digital libraries on certain sites. The changing customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Balancing The Power Equation Suzlon Energy Limited Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Balancing The Power Equation Suzlon Energy Limited Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 could wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company 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 require an immediate service to prevent the decreasing industry development. Introduction of digital publishing could show to be an instant option with low quantity of danger for the business. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to first collects the information related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a threat to the business's long term existence, however the situation can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
