Sony Music India Assignment 2 Case Study Solution and Analysis
Intro
Sony Music India Assignment 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Sony Music India Assignment 2 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 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
Sony Music India Assignment 2 Case Study Analysis has certain strengths that can be used to decrease the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sony Music India Assignment 2 Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position permits the company to think about numerous development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of Sony Music India Assignment 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Sony Music India Assignment 2 Case Study Solution as well, but the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain dangers to Sony Music India Assignment 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Sony Music India Assignment 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. The total financial performance of the company could be evaluated by using the charts offered in the case Appendices. It might be evaluated from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Sony Music India Assignment 2 Case Study Analysis is growing and the company is rather efficient in drawing in a large number of consumers at a potential price.
Along with it, the second graph which shows the annual development in the Sony Music India Assignment 2 Case Study Analysis overall assets, reveals that the company is quite effective in including worth to its possessions through its earnings. The development in possessions reveals that the total worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis relating to the distribution of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sectors 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 business and the current trends in the external environment of the business. A quick 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 individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting Sony Music India Assignment 2 Case Study Help organisation 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 Sony Music India Assignment 2 Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out useful products etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the Sony Music India Assignment 2 Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement 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 soon.
Environmental.
Ecological forces affecting Sony Music India Assignment 2 Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed 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 Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers 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 Supplier.
The significant providers of the Sony Music India Assignment 2 Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Sony Music India Assignment 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat 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 business sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate option to prevent the decreasing market development. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the data associated with the consumer need, the potential markets, the government policies and the data associated with the competitors provided in the market. After that, the company needs to choose one prospective section for its preliminary offering. It needs to collect research that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the company should go for the initial offering. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
