Sony Music India 3 Case Study Solution and Analysis
Intro
Sony Music India 3 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Sony Music India 3 Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the market.
• 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 concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sony Music India 3 Case Study Help has particular strengths that can be utilized to decrease the threats, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Sony Music India 3 Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position permits the business to think about a number of advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which could increase restraints for the business in executing its development program. The weak points of Sony Music India 3 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, 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 needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Sony Music India 3 Case Study Help as well, but the development could be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific dangers to Sony Music India 3 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Sony Music India 3 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the market along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual total incomes of Sony Music India 3 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a large number of customers at a prospective cost.
In addition to it, the second chart which shows the annual development in the Sony Music India 3 Case Study Solution total properties, reveals that the company is rather efficient in including value to its assets through its incomes. The development in assets shows that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the circulation of total earnings of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the performance of the company and the recent 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 substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces affecting Sony Music India 3 Case Study Help company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Sony Music India 3 Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. Together with it, the financial policies related to the import of books affect the general company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of customers of the Sony Music India 3 Case Study Help. However, the consumer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Sony Music India 3 Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on 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 Supplier.
The significant suppliers of the Sony Music India 3 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 Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Sony Music India 3 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. Founded in the same period, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a significant focus on instructional publications. CIP serves as a hazard 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 Sony Music India 3 Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Sony Music India 3 Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant solution to prevent the decreasing industry development. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must first collects the data related to the customer demand, the possible markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the business must choose one potential segment for its preliminary offering. It needs to gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the company need to go for the preliminary offering. If the preliminary offering shows a success, the company ought to choose the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a risk to the company's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
