Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Solution and Analysis
Intro
Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable 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
Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis has certain strengths that can be utilized to minimize the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position enables the company to think about a number of advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which could increase restraints for the business in implementing its development program. The weak points of Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis as well, but the development could be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually posed certain threats to Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market together with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the annual total revenues of Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a big number of customers at a prospective price.
In addition to it, the second chart which reveals the annual growth in the Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Help overall possessions, reveals that the business is rather efficient in adding value to its properties through its earnings. The development in properties shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the distribution of total incomes of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the general company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Solution consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the files presented in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks second and third in numerous market sections, with a significant concentrate on educational publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Jain Irrigation Systems Limited Inclusive Growth For Indias Farmers Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an instant service to avoid the decreasing industry growth. Introduction of digital publishing could prove to be an immediate solution with low quantity of threat for the business. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should first collects the data related to the customer demand, the potential markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term existence, however the scenario can be controlled by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
