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Mind Tree A Community Of Communities 2 Case Solution

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Mind Tree A Community Of Communities 2 Case Study Solution and Analysis


Introduction

Mind Tree A Community Of Communities 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and communication services. Significant company segments of the company include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports and so on. Mind Tree A Community Of Communities 2 Case Study Help has actually become a specialized information supplier and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.

Vital Concerns

CMP has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and Mind Tree A Community Of Communities 2 Case Study Help in particular. These elements consist of;

• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
Executive Summary
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 situation? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Mind Tree A Community Of Communities 2 Case Study Analysis has certain strengths that can be used to reduce the threats, overcome the weak point and get the chances. Strengths of CMP are provided as follows;

• The long term experience of Mind Tree A Community Of Communities 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position permits the business to think about numerous development opportunities without any fear of raising fund externally.

Weak points

In addition to the strengths, the company has certain weak points which could increase restraints for the business in executing its development program. The weak points of Mind Tree A Community Of Communities 2 Case Study Help are offered 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 highly relies over the Chinese markets for its development. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing industry is declining considering that 2008, impacting Mind Tree A Community Of Communities 2 Case Study Analysis as well, but the growth might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;

• The company could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.

Risks

The altering macro trends in the market and increasing competition in the publishing market has actually positioned certain risks to Mind Tree A Community Of Communities 2 Case Study Solution including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Mind Tree A Community Of Communities 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the risk of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall profits of Mind Tree A Community Of Communities 2 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in attracting a large number of consumers at a potential cost.

In addition to it, the second chart which shows the annual growth in the Mind Tree A Community Of Communities 2 Case Study Help total assets, reveals that the business is rather efficient in including worth to its possessions through its revenues. The growth in assets shows that the total value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).

Another monetary analysis of the company using the provided information could be the analysis relating to the circulation of overall revenues of the company. Major 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 company might move towards other company segments with a potential growth to attain its future advancement objective.

PESTEL Analysis

PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in general and the Mind Tree A Community Of Communities 2 Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies connected to the import of books impact the total company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.

Social and Demographical.

Social and demographical forces include the population growth, the consumer's preferences towards reading helpful products etc. China has the greatest population in the world with a high population development, revealing the increasing number of consumers of the Mind Tree A Community Of Communities 2 Case Study Analysis. The consumer choices 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 consumer preferences.

Technological.

Technological forces impacting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Mind Tree A Community Of Communities 2 Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to 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 controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.

Industry Analysis (Porter's Five Forces Design).

Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.

Hazard of New Entrants.

Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.

Threat of Replacement.

Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents provided in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the risk of alternative for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.

Bargaining Power of Provider.

The significant providers of the Mind Tree A Community Of Communities 2 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.

Bargaining Power of Buyer.

Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.

Competitors Analysis.

CMP runs in a highly competitive industry with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Mind Tree A Community Of Communities 2 Case Study Analysis include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market circumstance.

Posts and telecommunication Press (PTP).

It was also founded in the very same duration as Mind Tree A Community Of Communities 2 Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present 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 supplies high worth to clients.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.

Suggestions

As the preferences are moving towards digital publishing and the company require an instant solution to avoid the declining market development. The business might also consider the growth program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its product portfolio, the business ought to first collects the information related to the customer need, the potential markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing market is decreasing since 2008, revealing a threat to the business's long term presence, but the situation can be controlled by considering a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.

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