Mindtree Community Of Communities Case Study Solution and Analysis
Mindtree Community Of Communities Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and Mindtree Community Of Communities Case Study Help in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Mindtree Community Of Communities Case Study Solution has specific strengths that can be utilized to minimize the threats, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Mindtree Community Of Communities Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position enables the company to think about several advancement opportunities without any worry of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of Mindtree Community Of Communities Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The development of the publishing industry is declining since 2008, affecting Mindtree Community Of Communities Case Study Help as well, but the development might be revived by availing certain chances provided in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has presented specific dangers to Mindtree Community Of Communities Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Mindtree Community Of Communities Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the risk of losing the consumer base.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. The total financial performance of the business could be examined by using the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Mindtree Community Of Communities Case Study Analysis is growing and the company is rather efficient in attracting a large number of clients at a possible cost.
In addition to it, the second graph which shows the annual development in the Mindtree Community Of Communities Case Study Solution total assets, reveals that the company is rather efficient in adding value to its properties through its earnings. The development in assets reveals that the total value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis concerning the distribution of total earnings of the business. Major part of the incomes of CMP originates 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 potential growth to attain its future development goal.
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Mindtree Community Of Communities Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the financial policies connected to the import of books impact the total business at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful materials and so on. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Mindtree Community Of Communities Case Study Help. However, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Mindtree Community Of Communities Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
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 ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents presented in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Mindtree Community Of Communities Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 needs high quality documents at competitive prices.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Mindtree Community Of Communities Case Study Help include;.
• 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 could wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended 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. For that reason, introduction of digital publishing could show to be an immediate service with low quantity of risk for the business. The business could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should initially gathers the information associated with the consumer need, the potential markets, the federal government guidelines and the data connected to the competitors presented in the market. After that, the business should choose one potential section for its preliminary offering. It needs to gather research study that how it could separate its digital publishing from the existing competitors' items. The steps above the business need to go for the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to implement its digital publishing program.
Although, the development of the publishing industry is decreasing since 2008, showing a risk to the business's long term presence, however the situation can be managed by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.