Mercedes Benz India Case Study Solution and Analysis
Mercedes Benz India Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Mercedes Benz India Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Mercedes Benz India Case Study Analysis has specific strengths that can be made use of to lower the risks, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Mercedes Benz India Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position enables the company to consider several development opportunities without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Mercedes Benz India Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing industry is declining because 2008, affecting Mercedes Benz India Case Study Solution as well, but the development could be revived by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has actually postured particular risks to Mercedes Benz India Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Mercedes Benz India Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the client base.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the general financial performance of the company could be analyzed by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Mercedes Benz India Case Study Analysis is growing and the company is quite effective in attracting a a great deal of clients at a prospective price.
Along with it, the 2nd graph which shows the yearly development in the Mercedes Benz India Case Study Analysis overall possessions, reveals that the business is quite effective in adding worth to its possessions through its incomes. The growth in properties reveals that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the circulation of overall revenues of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a potential development to achieve its future advancement objective.
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the state 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 Party of China. It might be said that the general political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Mercedes Benz India Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the overall service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the greatest population on the planet with a high population growth, revealing the increasing variety of consumers of the Mercedes Benz India Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Mercedes Benz India Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files presented in the digital libraries on certain websites. The altering consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Mercedes Benz India Case Study Solution consist of the providers of the paper for publishing 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 Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Mercedes Benz India Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sections, with a major focus on instructional publications. CIP acts 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 might wean the market share of Mercedes Benz India Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Mercedes Benz India Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate option to prevent the decreasing market growth. Introduction of digital publishing might prove to be an instant option with low quantity of danger for the business. However, the company might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the customer need, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is declining since 2008, revealing a risk to the company's long term presence, however the scenario can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.