Tata Chemicals Ltd Global Acquisitions 4 Case Study Solution and Analysis
Intro
Tata Chemicals Ltd Global Acquisitions 4 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and Tata Chemicals Ltd Global Acquisitions 4 Case Study Help in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tata Chemicals Ltd Global Acquisitions 4 Case Study Analysis has specific strengths that can be used to decrease the hazards, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Tata Chemicals Ltd Global Acquisitions 4 Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its clients.
• Strong monetary position permits the business to think about several advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Tata Chemicals Ltd Global Acquisitions 4 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Tata Chemicals Ltd Global Acquisitions 4 Case Study Help as well, but the development could be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client 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 utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed specific dangers to Tata Chemicals Ltd Global Acquisitions 4 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Tata Chemicals Ltd Global Acquisitions 4 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be determined. The total monetary efficiency of the company could be evaluated by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Tata Chemicals Ltd Global Acquisitions 4 Case Study Solution is growing and the business is quite effective in bring in a a great deal of consumers at a potential rate.
In addition to it, the second chart which reveals the yearly growth in the Tata Chemicals Ltd Global Acquisitions 4 Case Study Solution overall assets, shows that the business is rather effective in including value to its assets through its revenues. The growth in assets reveals that the total value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the distribution of total revenues of the company. Major part of the revenues of CMP originates 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 potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the current patterns 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 could have a significant influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Tata Chemicals Ltd Global Acquisitions 4 Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the total service at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Tata Chemicals Ltd Global Acquisitions 4 Case Study Help includes the concerns of ecological neighborhoods over the usage 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers 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 competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Tata Chemicals Ltd Global Acquisitions 4 Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence 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 competitors of Tata Chemicals Ltd Global Acquisitions 4 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Tata Chemicals Ltd Global Acquisitions 4 Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• 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 focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an instant option to prevent the decreasing market growth. Therefore, introduction of digital publishing might show to be an immediate option with low quantity of danger for the business. Nevertheless, the business might also 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 needs to initially gathers the data related to the customer need, the potential markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, showing a threat to the business's long term presence, however the scenario can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
