Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution and Analysis
Introduction
Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Analysis in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution has particular strengths that can be used to reduce the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the company to consider numerous development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase restraints for the business in implementing its development program. The weaknesses of Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution as well, but the development might be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually posed specific hazards to Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall profits of Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in drawing in a large number of clients at a prospective rate.
In addition to it, the second graph which shows the annual development in the Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution overall assets, shows that the company is rather efficient in including worth to its properties through its profits. The development in properties reveals that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis relating to the circulation of overall revenues of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces affecting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative products and so on. China has the highest population on the planet with a high population development, revealing the increasing number of customers of the Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Analysis. Nevertheless, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the released documents is the documents presented in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks second and third in different market sectors, with a major focus on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Gabriel Rozman Tata Consultancy Services Iberoamerica Video Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an immediate option to avoid the declining industry development. The business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to first gathers the information associated with the consumer demand, the possible markets, the government regulations and the data associated with the competitors provided in the market. After that, the business should decide one possible sector for its initial offering. It needs to gather research that how it might differentiate its digital publishing from the existing competitors' items. The steps above the company need to go for the initial offering. If the initial offering shows a success, the company ought to choose the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a danger to the company's long term existence, however the scenario can be controlled by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
