Oberoi Hotels Case Study Solution and Analysis
Oberoi Hotels Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Oberoi Hotels Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Oberoi Hotels Case Study Solution has specific strengths that can be utilized to decrease the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Oberoi Hotels Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong monetary position allows the business to consider numerous advancement chances without any fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase constraints for the business in implementing its advancement program. The weak points of Oberoi Hotels Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is declining given that 2008, impacting Oberoi Hotels Case Study Solution too, however the growth might be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured particular hazards to Oberoi Hotels Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Oberoi Hotels Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the risk of losing the client base.
The business has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be determined. The general financial performance of the company could be examined by using the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Oberoi Hotels Case Study Analysis is growing and the business is rather efficient in bring in a large number of customers at a prospective price.
In addition to it, the 2nd chart which shows the yearly development in the Oberoi Hotels Case Study Solution total assets, reveals that the business is quite effective in adding worth to its assets through its incomes. The development in assets reveals that the total value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis concerning the distribution of overall profits of the business. Major part of the revenues 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 company sections with a possible growth to accomplish its future development goal.
PESTEL analysis might be conducted to find out the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Oberoi Hotels Case Study Solution service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Oberoi Hotels Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies associated with the import of books affect the overall organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of consumers of the Oberoi Hotels Case Study Analysis. Nevertheless, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental forces affecting Oberoi Hotels Case Study Help includes the issues of environmental communities over the use 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 needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Oberoi Hotels Case Study Analysis include 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 Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
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 greatest market share in the Chinese publishing market. Major rivals of Oberoi Hotels Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an instant service to prevent the decreasing market development. Intro of digital publishing might prove to be an immediate option with low quantity of risk for the business. However, the business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should first collects the data related to the consumer demand, the prospective markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining because 2008, revealing a hazard to the business's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.