Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Solution and Analysis
Intro
Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture 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 supplier and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Solution has particular strengths that can be made use of to minimize the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the company to consider a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restrictions for the business in executing its advancement program. The weak points of Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Analysis as well, but the growth might be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment 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 funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has positioned particular threats to Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. Nevertheless, the general monetary efficiency of the company could be evaluated by using the graphs given up the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Analysis is growing and the business is quite efficient in attracting a a great deal of clients at a possible rate.
Together with it, the second chart which reveals the annual development in the Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Analysis total possessions, reveals that the company is rather efficient in including value to its assets through its revenues. The growth in possessions shows that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis regarding the distribution of total incomes of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative materials etc. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published documents is the files presented in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Help consist of 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 Purchaser.
Bargaining 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 market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in different market sectors, with a significant concentrate on academic publications. CIP functions as a danger 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 Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Sonata Software Ltd India Building Global Competitive Advantage Through An International Joint Venture Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service 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 business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an immediate option to prevent the decreasing market growth. Intro of digital publishing might prove to be an immediate solution with low quantity of danger for the business. However, the company might likewise 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 ought to first gathers the data connected to the consumer need, the possible markets, the government regulations and the data connected to the rivals provided in the market. After that, the business needs to decide one prospective segment for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company should go for the preliminary offering. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, revealing a danger to the business's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
