Positioning The Tata Nano A Case Study Solution and Analysis
Introduction
Positioning The Tata Nano A Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Positioning The Tata Nano A Case Study Solution in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Positioning The Tata Nano A Case Study Analysis has specific strengths that can be utilized to lower the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Positioning The Tata Nano A Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the company to consider numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Positioning The Tata Nano A Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining given that 2008, impacting Positioning The Tata Nano A Case Study Solution as well, however the growth might be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The company could also present 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 expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has postured certain threats to Positioning The Tata Nano A Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Positioning The Tata Nano A Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. However, the general monetary performance of the business could be evaluated by using the graphs given up the case Appendices. It could be examined 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 annual demand of the items of Positioning The Tata Nano A Case Study Solution is growing and the business is quite efficient in attracting a large number of customers at a prospective price.
Together with it, the 2nd chart which reveals the annual development in the Positioning The Tata Nano A Case Study Solution total properties, shows that the company is rather efficient in adding value to its possessions through its earnings. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the distribution of total profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting Positioning The Tata Nano A Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out informative materials and so on. China has the highest population on the planet with a high population growth, showing the increasing number of customers of the Positioning The Tata Nano A Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Positioning The Tata Nano A Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids 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 examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Competition.
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. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Positioning The Tata Nano A Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Positioning The Tata Nano A Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and second in various market segments, with a significant concentrate on educational publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Positioning The Tata Nano A Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate option to prevent the decreasing industry development. Therefore, intro of digital publishing might show to be an immediate option with low amount of risk for the business. However, the company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the consumer demand, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. If the initial offering proves a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the business's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
