Tata Communications Emerging Markets Growth Strategy 2 Case Study Solution and Analysis
Introduction
Tata Communications Emerging Markets Growth Strategy 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis has certain strengths that can be made use of to lower the dangers, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position enables the company to consider numerous advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Tata Communications Emerging Markets Growth Strategy 2 Case Study Solution as well, but the growth might be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned particular threats to Tata Communications Emerging Markets Growth Strategy 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Tata Communications Emerging Markets Growth Strategy 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual total revenues of Tata Communications Emerging Markets Growth Strategy 2 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite efficient in bring in a large number of clients at a potential rate.
In addition to it, the 2nd graph which reveals the annual development in the Tata Communications Emerging Markets Growth Strategy 2 Case Study Solution total possessions, shows that the company is quite efficient in adding value to its possessions through its earnings. The growth in assets reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis regarding the distribution of total earnings of the business. Huge part of the earnings 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 company segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect 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 directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the financial policies connected to the import of books affect the overall service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Tata Communications Emerging Markets Growth Strategy 2 Case Study Solution consists of the issues of environmental communities 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 must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the digital libraries on particular websites. The changing customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Tata Communications Emerging Markets Growth Strategy 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely 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. Major rivals of Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a significant focus on instructional publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Tata Communications Emerging Markets Growth Strategy 2 Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
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 suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the declining market development. Therefore, intro of digital publishing might prove to be an instant solution with low amount of threat for the business. Nevertheless, 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 needs to initially collects the information related to the customer demand, the prospective markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a danger to the company's long term existence, however the scenario can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
