Taj Hotels Resorts And Palaces 2 Case Study Solution and Analysis
Introduction
Taj Hotels Resorts And Palaces 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Taj Hotels Resorts And Palaces 2 Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Taj Hotels Resorts And Palaces 2 Case Study Analysis has particular strengths that can be made use of to minimize the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Taj Hotels Resorts And Palaces 2 Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong financial position permits the company to consider numerous development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Taj Hotels Resorts And Palaces 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation 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 growth. It needs to propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing because 2008, impacting Taj Hotels Resorts And Palaces 2 Case Study Solution as well, but the growth could be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has posed specific threats to Taj Hotels Resorts And Palaces 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Taj Hotels Resorts And Palaces 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors 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 utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry along with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be determined. Nevertheless, the general financial efficiency of the business might be examined by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Taj Hotels Resorts And Palaces 2 Case Study Help is growing and the business is quite effective in attracting a large number of consumers at a possible price.
Together with it, the second chart which reveals the annual growth in the Taj Hotels Resorts And Palaces 2 Case Study Solution total properties, reveals that the business is rather effective in including worth to its assets through its earnings. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the distribution of total profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Taj Hotels Resorts And Palaces 2 Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used 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 regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Taj Hotels Resorts And Palaces 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Taj Hotels Resorts And Palaces 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact 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 brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus 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 products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing market development. The business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first gathers the information related to the consumer need, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the company ought 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 market is declining considering that 2008, showing a risk to the company's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
