Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution and Analysis
Introduction
Motilal Oswal Financial Services Ltd An Ipo In India 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 consisting of; collecting information, processing details and communication services. Major business sectors of the company consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis has actually become a specialized details company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 scenario? Do the long important experience, technical resources and the abilities of the business 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
Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis has certain strengths that can be used to decrease the risks, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the company to consider several development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help as well, but the development could be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has presented particular dangers to Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution due to the customer shift towards digital libraries.
• The presence 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 get a strong customer base by using specific strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. However, the overall monetary performance of the company could be evaluated by using the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help is growing and the company is quite effective in drawing in a a great deal of clients at a possible price.
Along with it, the second graph which shows the yearly growth in the Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution overall assets, shows that the company is rather effective in adding value to its assets through its revenues. The development in possessions shows that the overall worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis concerning the distribution of overall earnings 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 might move towards other business segments with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful products etc. China has the highest population in the world with a high population development, revealing the increasing variety of customers of the Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help. However, the customer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires 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 5 Forces Design could be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Motilal Oswal Financial Services Ltd An Ipo In India 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 supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 could wean the market share of CMP quickly in the present market situation.
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 company scale. It is also one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate option to prevent the decreasing industry growth. The company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer need, the potential markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a risk to the company's long term existence, but the scenario can be controlled by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
