Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution and Analysis
Introduction
Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement 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 info provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular difficulties to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of 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 abilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution has certain strengths that can be used to decrease the dangers, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position enables the business to think about numerous advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its development program. The weak points of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis too, however the development could be revived by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The company might likewise present 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 lower its dependence over Chinese markets by utilizing its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has presented certain risks to Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual total revenues of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather efficient in drawing in a large number of customers at a potential price.
Along with it, the 2nd graph which shows the yearly growth in the Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help total possessions, reveals that the company is rather effective in including worth to its assets through its revenues. The development in properties reveals that the overall value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the distribution of overall profits of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies connected to the import of books affect the general company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help. However, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help consists of the issues of environmental communities over the usage 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 ought to 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 initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the digital libraries on particular sites. The altering customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis include the providers 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 supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence 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 Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in numerous market segments, with a major focus on academic publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business need an instant option to avoid the decreasing industry development. Intro of digital publishing might prove to be an immediate solution with low amount of danger for the business. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first collects the data related to the customer demand, the possible markets, the federal government policies and the data associated with the rivals presented in the market. After that, the business must decide one potential section for its initial offering. It needs to collect research study that how it might distinguish its digital publishing from the existing competitors' items. The actions above the business ought to go for the preliminary offering. If the initial offering proves a success, the business needs to opt for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, showing a danger to the company's long term presence, however the situation can be managed by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
