Taj Hotels Resorts And Palaces Case Study Solution and Analysis
Taj Hotels Resorts And Palaces Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; gathering details, processing details and interaction services. Significant company sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Taj Hotels Resorts And Palaces Case Study Solution has actually ended up being a specialized information provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Taj Hotels Resorts And Palaces Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Taj Hotels Resorts And Palaces Case Study Analysis has certain strengths that can be made use of to reduce the dangers, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Taj Hotels Resorts And Palaces Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong monetary position enables the company to think about a number of development opportunities with no worry of raising fund externally.
Together with the strengths, the business has specific weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Taj Hotels Resorts And Palaces Case Study Help 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 extremely relies over the Chinese markets for its growth. It must propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
The development of the publishing market is declining since 2008, affecting Taj Hotels Resorts And Palaces Case Study Help as well, but the growth could be restored by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The business might likewise present 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 dependence over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competition in the publishing market has presented certain threats to Taj Hotels Resorts And Palaces Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Taj Hotels Resorts And Palaces Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the customer base.
The business has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be determined. However, the general monetary performance of the company could be evaluated by utilizing the charts given up the case Appendices. It could be examined from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Taj Hotels Resorts And Palaces Case Study Help is growing and the company is quite effective in bring in a a great deal of consumers at a possible price.
In addition to it, the second chart which reveals the yearly development in the Taj Hotels Resorts And Palaces Case Study Solution total properties, shows that the company is rather efficient in adding worth to its possessions through its incomes. The growth in possessions reveals that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the given information could be the analysis concerning the circulation of total earnings of the business. 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 might move towards other business segments with a prospective growth to attain its future advancement goal.
PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting Taj Hotels Resorts And Palaces Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting Taj Hotels Resorts And Palaces Case Study Analysis consists of the concerns of ecological 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 used while publishing ought to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five 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;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers 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 participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Taj Hotels Resorts And Palaces Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company 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 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Taj Hotels Resorts And Palaces Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an immediate option to avoid the declining industry development. Introduction of digital publishing might show to be an immediate service with low quantity of threat for the business. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the customer need, the possible markets, the federal government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, showing a threat to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.