Round Two Repositioning The Tata Nano Case Study Solution and Analysis
Introduction
Round Two Repositioning The Tata Nano Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and Round Two Repositioning The Tata Nano Case Study Analysis in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns 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 used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Round Two Repositioning The Tata Nano Case Study Help has particular strengths that can be used to minimize the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Round Two Repositioning The Tata Nano Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position allows the company to consider a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Round Two Repositioning The Tata Nano Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, affecting Round Two Repositioning The Tata Nano Case Study Solution too, however the growth might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has postured certain threats to Round Two Repositioning The Tata Nano Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Round Two Repositioning The Tata Nano Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP could not be determined. The overall financial performance of the company could be evaluated by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Round Two Repositioning The Tata Nano Case Study Help is growing and the company is quite efficient in bring in a a great deal of clients at a possible price.
Along with it, the 2nd chart which shows the annual development in the Round Two Repositioning The Tata Nano Case Study Solution total assets, shows that the business is quite effective in including worth to its possessions through its profits. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the circulation of overall incomes of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could 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. It could be stated that the general political forces impacting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Round Two Repositioning The Tata Nano Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies associated with the import of books affect the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful products etc. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Round Two Repositioning The Tata Nano Case Study Solution. However, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Round Two Repositioning The Tata Nano Case Study Help includes the issues of ecological communities over the usage 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 needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Round Two Repositioning The Tata Nano Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Round Two Repositioning The Tata Nano Case Study Solution include;.
• Chemical Industry 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 existing market circumstance.
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 organisation scale. It is also one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an instant option to avoid the decreasing market development. Intro of digital publishing might show to be an immediate solution with low quantity of danger for the business. However, the company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first collects the data related to the consumer need, the potential markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering proves 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
Although, the growth of the publishing industry is declining considering that 2008, revealing a risk to the company's long term existence, but the situation can be managed by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
