Sony Music India Assignment Case Study Solution and Analysis
Intro
Sony Music India Assignment Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing info and interaction services. Major business sectors of the company consist of; books, regulars, consultancy and distribution. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibits, research study reports and so on. Sony Music India Assignment Case Study Solution has ended up being a specialized details company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Sony Music India Assignment Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 important experience, technical resources and the abilities of the company could be used to pursue 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 Case Study Help has specific strengths that can be utilized to reduce the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sony Music India Assignment Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the company to consider numerous development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase constraints for the business in implementing its development program. The weak points of Sony Music India Assignment Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard 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 prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Sony Music India Assignment Case Study Solution as well, but the development might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has presented certain risks to Sony Music India Assignment Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Sony Music India Assignment Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall profits of Sony Music India Assignment Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is quite effective in drawing in a big number of customers at a potential cost.
Together with it, the 2nd graph which reveals the annual development in the Sony Music India Assignment Case Study Analysis total possessions, shows that the company is rather effective in adding value to its possessions through its earnings. The growth in assets reveals that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information could be the analysis regarding the distribution of overall profits of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It could be stated that the general political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Sony Music India Assignment Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the general company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading helpful products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Sony Music India Assignment Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Sony Music India Assignment Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable 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 regarding the publishing sector is controlled 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 forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. However, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on particular sites. The changing customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Sony Music India Assignment Case Study Solution include the suppliers of the paper for publishing 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 industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sony Music India Assignment Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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).
It was also established in the very same duration as Sony Music India Assignment Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation 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 internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an instant option to avoid the decreasing market growth. Intro of digital publishing could prove to be an immediate service with low amount of threat for the company. Nevertheless, the company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the customer demand, the prospective markets, the government regulations and the data related to the rivals presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a risk to the company's long term existence, but the situation can be controlled by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
