Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution and Analysis
Introduction
Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing details and interaction services. Major business sections of the company include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports and so on. Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Analysis has actually become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Help in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing 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 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 capabilities of the business could be utilized 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
Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution has particular strengths that can be made use of to reduce the threats, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position allows the company to consider several development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase constraints for the business in executing its advancement program. The weaknesses of Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, 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 development. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution also, but the growth could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has posed certain risks to Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market along with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be determined. However, the general monetary performance of the business might be examined by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Help is growing and the company is quite efficient in attracting a large number of clients at a prospective price.
Along with it, the 2nd chart which reveals the annual growth in the Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution total assets, shows that the business is quite effective in adding value to its assets through its revenues. The growth in properties reveals that the total worth of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the distribution of total earnings 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 might move towards other business sections with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people 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 Party of China. It might be said that the total political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books affect the total business at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should 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 authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
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. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Tata Chemicals Magadi Confronting Poverty In Rural Africa Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use 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 introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 business segments to the new one can lead the company to lose need of its items in the market.
Recommendations
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 recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the declining industry development. Intro of digital publishing could prove to be an immediate option with low amount of risk for the business. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must initially gathers the information related to the customer demand, the possible markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business ought to 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 decreasing because 2008, showing a hazard to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
