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Mind Tree A Community Of Communities Case Solution

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Mind Tree A Community Of Communities Case Study Solution and Analysis


Intro

Mind Tree A Community Of Communities Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.

Crucial Problems

Although, Mind Tree A Community Of Communities Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These aspects include;

• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
Executive Summary
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Mind Tree A Community Of Communities Case Study Analysis has specific strengths that can be used to minimize the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;

• The long term experience of Mind Tree A Community Of Communities Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong financial position allows the company to think about a number of advancement opportunities without any fear of raising fund externally.

Weaknesses

In addition to the strengths, the business has particular weak points which might increase restraints for the company in executing its development program. The weaknesses of Mind Tree A Community Of Communities Case Study Help are provided as follows;

• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing market is decreasing because 2008, affecting Mind Tree A Community Of Communities Case Study Analysis as well, but the development might be restored by availing specific chances provided in the market. The market chances for CMP include;

• The business could likewise introduce 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 expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.

Risks

The changing macro trends in the market and increasing competitors in the publishing industry has actually presented certain risks to Mind Tree A Community Of Communities Case Study Solution including;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Mind Tree A Community Of Communities Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry together with existence of high competitors increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP could not be computed. Nevertheless, the total monetary efficiency of the company might be analyzed by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Mind Tree A Community Of Communities Case Study Solution is growing and the company is quite effective in attracting a a great deal of consumers at a possible cost.

In addition to it, the 2nd graph which reveals the annual development in the Mind Tree A Community Of Communities Case Study Help total possessions, reveals that the business is quite efficient in including worth to its possessions through its earnings. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).

Another financial analysis of the business using the provided information might be the analysis concerning the circulation of overall revenues of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential development to accomplish its future development goal.

PESTEL Analysis

PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Mind Tree A Community Of Communities Case Study Analysis company are high. The government policies regarding the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population development, the customer's choices towards checking out useful products etc. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Mind Tree A Community Of Communities Case Study Analysis. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer choices.

Technological.

Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Mind Tree A Community Of Communities Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.

Market Analysis (Porter's Five Forces Model).

Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.

Risk of New Entrants.

Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.

Hazard of Substitution.

Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on particular websites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.

Competitive Competition.

Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Mind Tree A Community Of Communities Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.

Rivals Analysis.

CMP operates in a highly competitive market with the presence of a great deal of competitors. The business 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 Case Study Help consist of;.

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

Chemical Market Press (CIP).

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

Posts and telecommunication Press (PTP).

Another close competitor 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 terms of business scale. It is likewise among the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk 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 service sections to the brand-new one can lead the company to lose demand of its products in the market.

Suggestions

With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business require an instant option to prevent the decreasing market growth. For that reason, introduction of digital publishing might show to be an immediate option with low quantity of risk for the business. The company could also think about the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the company ought to first collects the data connected to the customer demand, the prospective markets, the federal government regulations and the data connected to the rivals provided in the market. After that, the business ought to choose one possible section for its initial offering. It ought to collect research study that how it might separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the preliminary offering. The company needs to go for the other markets if the initial offering proves a success. In this way the business would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing industry is decreasing given that 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.

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