Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution and Analysis
Intro
Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing details and interaction services. Significant service sections of the company include; books, regulars, consultancy and circulation. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibits, research study reports and so on. Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis has become a specialized information service provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns 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 made use of to pursue 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 Help has particular strengths that can be utilized to lower the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the company to think about a number of development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase restrictions for the company in executing its advancement program. The weaknesses of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Motilal Oswal Financial Services Ltd An Ipo In India Case Study Solution also, but the growth might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific risks to Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing 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 competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry along with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP could not be calculated. The overall financial efficiency of the company could be examined by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis is growing and the company is rather efficient in attracting a a great deal of clients at a potential price.
Together with it, the second graph which reveals the yearly development in the Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help total properties, reveals that the company is rather efficient in including value to its assets through its incomes. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis concerning the circulation of overall earnings of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the efficiency of the company and the current trends 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 might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. Together with it, the financial policies connected to the import of books impact the general business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry 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 Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and third in different market segments, with a significant focus on educational publications. CIP functions 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 marketplace share of Motilal Oswal Financial Services Ltd An Ipo In India Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival 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 regards to organisation scale. It is also one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 business sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market 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 decreasing industry growth. Introduction of digital publishing might prove to be an immediate service with low amount of threat for the company. However, the company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially collects the data related to the consumer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
