Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution and Analysis
Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing info and communication services. Significant organisation sectors of the business consist of; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant products consist of books, regulars, online media, exhibits, research reports and so on. Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution has actually become a specialized details provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
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 made use of to lower the risks, overcome the weak point and get the opportunities. 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 Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong monetary position allows the company to consider a number of development opportunities without any worry of raising fund externally.
Along with the strengths, the company has particular weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business 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 should propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution as well, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competition in the publishing market has posed specific dangers to Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis due to the consumer shift towards digital libraries.
• The existence 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 acquire a strong consumer base by utilizing certain methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competitors increases the danger of losing the client base.
The business has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be determined. The total financial efficiency of the business could be analyzed by utilizing the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help is growing and the business is rather effective in drawing in a large number of consumers at a prospective cost.
In addition to it, the 2nd chart which shows the annual growth in the Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution total properties, shows that the company is rather efficient in adding value to its properties through its incomes. The development in properties reveals that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis regarding the circulation of overall incomes of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a prospective development to achieve its future development objective.
PESTEL analysis might be conducted to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies related to the import of books impact the overall service at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Solution includes the concerns of environmental communities 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 used while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the danger of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the buyers requires high quality files at competitive costs.
CMP runs in an extremely competitive industry with the presence of large number 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 Raj Datta Former Chief Knowledge Officer Of Mindtree In Class Comments April 1 2011 Video Supplement Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily 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 sixth in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the decreasing market development. For that reason, intro of digital publishing could prove to be an instant option with low quantity of risk for the business. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must first collects the data related to the customer demand, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing industry is declining since 2008, revealing a threat to the business's long term existence, however the scenario can be controlled by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.