Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Solution and Analysis
Introduction
Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Analysis in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Solution has particular strengths that can be utilized to reduce the threats, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position allows the business to consider numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help as well, however the growth could be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific dangers to Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry along with existence of high competition increases the threat of losing the client base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. The general financial performance of the business might be examined by utilizing the graphs offered in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Solution is growing and the business is rather effective in bring in a a great deal of customers at a prospective rate.
Along with it, the 2nd chart which reveals the annual growth in the Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help overall possessions, reveals that the company is quite efficient in adding worth to its assets through its earnings. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of total incomes of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the total organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Analysis includes the concerns of ecological neighborhoods 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 ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in numerous market sectors, with a major focus on educational publications. CIP functions as a risk 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 Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Sona Koyo Steering Systems Limited Spearheading Competitiveness In Indias Automotive Components Industry 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 company sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an immediate option to avoid the declining industry development. Intro of digital publishing could show to be an instant solution with low amount of danger for the company. The company could also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the information related to the consumer demand, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, however the circumstance can be controlled by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
