Icici Banks Credit Card Journey To Asian Leadership Case Study Solution and Analysis
Introduction
Icici Banks Credit Card Journey To Asian Leadership Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Icici Banks Credit Card Journey To Asian Leadership Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions 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 capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Icici Banks Credit Card Journey To Asian Leadership Case Study Solution has particular strengths that can be used to minimize the threats, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Icici Banks Credit Card Journey To Asian Leadership Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position enables the business to consider numerous advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Icici Banks Credit Card Journey To Asian Leadership Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Icici Banks Credit Card Journey To Asian Leadership Case Study Help as well, but the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has posed particular hazards to Icici Banks Credit Card Journey To Asian Leadership Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Icici Banks Credit Card Journey To Asian Leadership Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be computed. The total financial efficiency of the business might be analyzed by using the charts given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Icici Banks Credit Card Journey To Asian Leadership Case Study Solution is growing and the company is rather efficient in bring in a a great deal of customers at a possible rate.
Along with it, the 2nd chart which shows the annual growth in the Icici Banks Credit Card Journey To Asian Leadership Case Study Help total assets, shows that the company is quite effective in including value to its possessions through its incomes. The growth in assets reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the distribution of overall revenues of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Icici Banks Credit Card Journey To Asian Leadership Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Icici Banks Credit Card Journey To Asian Leadership Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry 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 rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Icici Banks Credit Card Journey To Asian Leadership Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Icici Banks Credit Card Journey To Asian Leadership Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sections, with a significant concentrate on instructional publications. CIP functions as a danger 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 Icici Banks Credit Card Journey To Asian Leadership Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
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 moving towards digital publishing and the business need an instant service to avoid the decreasing market development. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first gathers the information related to the customer demand, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for 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 business's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
