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Mind Tree A Community Of Communities Case Analysis

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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 business with a highest market share in the China's book retail market. CMP has actually become a specialized details company and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Vital Concerns

Although, Mind Tree A Community Of Communities Case Study Solution has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in specific. These elements consist of;

• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
Executive Summary
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 situation? Do the long important experience, technical resources and the capabilities of the business could be made use of 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 Solution has certain strengths that can be utilized to minimize the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;

• The long term experience of Mind Tree A Community Of Communities Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position allows the business to think about a number of development chances with no fear of raising fund externally.

Weak points

Along with the strengths, the business has certain weak points which might increase constraints for the business in implementing its development program. The weak points of Mind Tree A Community Of Communities Case Study Analysis are given as follows;

• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing industry is declining since 2008, affecting Mind Tree A Community Of Communities Case Study Solution as well, however the development could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;

• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.

Dangers

The altering macro trends in the market and increasing competition in the publishing industry has presented particular dangers to Mind Tree A Community Of Communities Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Mind Tree A Community Of Communities Case Study Solution due to the customer shift towards digital 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 gain a strong customer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to absence of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall incomes of Mind Tree A Community Of Communities Case Study Help during 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 business is rather effective in drawing in a big number of consumers at a prospective price.

Together with it, the 2nd graph which reveals the yearly growth in the Mind Tree A Community Of Communities Case Study Solution total possessions, shows that the business is rather effective in adding worth to its possessions through its profits. The development in properties reveals that the total worth of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).

Another monetary analysis of the business using the given information could be the analysis concerning the circulation of overall incomes 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 business might move towards other company sectors with a prospective growth to attain its future advancement objective.

PESTEL Analysis

PESTEL analysis might be performed to learn the various external forces impacting the efficiency 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 impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting Mind Tree A Community Of Communities Case Study Solution company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful products etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the Mind Tree A Community Of Communities Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer choices.

Technological.

Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces impacting Mind Tree A Community Of Communities Case Study Analysis 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 non reusable and the ink utilized while publishing should not be hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.

Market Analysis (Porter's 5 Forces Design).

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

Threat of New Entrants.

Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.

Danger of Alternative.

Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the risk of replacement for the market.

Competitive Rivalry.

Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.

Bargaining Power of Provider.

The significant suppliers of the Mind Tree A Community Of Communities Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.

Rivals Analysis.

CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Mind Tree A Community Of Communities Case Study Analysis include;.

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

Chemical Market Press (CIP).

CIP acts as a danger 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 quickly in the current market scenario.

Posts and telecommunication Press (PTP).

It was also established in the very same duration as Mind Tree A Community Of Communities Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.

Cons

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

Suggestions

With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining industry development. For that reason, introduction of digital publishing might show to be an immediate service with low quantity of threat for the business. The business could also think about the growth program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its product portfolio, the company should first collects the information related to the customer need, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business should 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 risk to the company's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.

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