Sonata Software Limited Case Study Solution and Analysis
Introduction
Sonata Software Limited Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and Sonata Software Limited Case Study Analysis in specific. These elements include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 company could be made use of 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
Sonata Software Limited Case Study Analysis has specific strengths that can be used to reduce the hazards, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Sonata Software Limited Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position permits the company to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which could increase constraints for the business in executing its development program. The weaknesses of Sonata Software Limited Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Sonata Software Limited Case Study Solution too, however the growth could be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has presented specific hazards to Sonata Software Limited Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Sonata Software Limited Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be computed. The total monetary performance of the company might be analyzed by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Sonata Software Limited Case Study Help is growing and the business is rather efficient in drawing in a a great deal of consumers at a possible rate.
Together with it, the second graph which shows the annual development in the Sonata Software Limited Case Study Analysis overall properties, reveals that the company is quite effective in including worth to its properties through its revenues. The development in possessions reveals that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis regarding the distribution of overall profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Sonata Software Limited Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the files presented in the digital libraries on particular websites. The altering customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Sonata Software Limited Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Sonata Software Limited Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 might wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an instant option to avoid the decreasing market development. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to initially gathers the information associated with the customer need, the prospective markets, the federal government policies and the information connected to the competitors provided in the market. After that, the company ought to decide one possible sector for its initial offering. It should gather research study that how it might separate its digital publishing from the existing competitors' items. The steps above the business must go for the initial offering. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a threat to the business's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
