Cairn India Case Study Solution and Analysis
Introduction
Cairn India Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Cairn India Case Study Help in particular. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several 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 made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cairn India Case Study Analysis has particular strengths that can be used to minimize the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Cairn India Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position allows the company to consider numerous advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Cairn India Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting Cairn India Case Study Solution as well, but the development might be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually positioned specific dangers to Cairn India Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Cairn India Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry along with existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual overall incomes of Cairn India Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the company is rather effective in drawing in a big number of consumers at a prospective cost.
In addition to it, the 2nd chart which shows the annual development in the Cairn India Case Study Analysis total possessions, reveals that the company is rather efficient in including worth to its properties through its incomes. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of total profits of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the total political forces impacting Cairn India Case Study Help organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Cairn India Case Study Solution in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books affect the overall organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Cairn India Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Cairn India Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Cairn India Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant solution to avoid the decreasing industry development. The business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the data related to the customer need, the prospective markets, the 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 implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, revealing a hazard to the business's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
