Sony Music India 7 Case Study Solution and Analysis
Introduction
Sony Music India 7 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing info and communication services. Significant business segments of the business include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. Sony Music India 7 Case Study Solution has become a specialized information supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and Sony Music India 7 Case Study Solution in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous 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 capabilities 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
Sony Music India 7 Case Study Analysis has certain strengths that can be used to minimize the threats, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Sony Music India 7 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the company to consider several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase constraints for the business in executing its advancement program. The weak points of Sony Music India 7 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Sony Music India 7 Case Study Help also, however the development might be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented certain hazards to Sony Music India 7 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Sony Music India 7 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall earnings of Sony Music India 7 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is quite efficient in bring in a large number of customers at a possible rate.
Together with it, the second graph which reveals the annual development in the Sony Music India 7 Case Study Analysis overall properties, reveals that the company is quite efficient in adding value to its possessions through its profits. The growth in properties shows that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis regarding the distribution of overall revenues of the business. Huge 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 service segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Sony Music India 7 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the general company at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful materials etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of customers of the Sony Music India 7 Case Study Help. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Sony Music India 7 Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Sony Music India 7 Case Study Solution include the suppliers of the paper for releasing files. 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.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Sony Music India 7 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks second and third in different market segments, with a major focus on academic publications. CIP functions as a hazard for CMP as it could 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 7 Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the declining industry growth. Introduction of digital publishing might show to be an immediate solution with low quantity of threat for the business. However, the company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to first gathers the information related to the consumer need, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a danger to the business's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
