Tata Consultancy Services Selling Certainty Case Study Solution and Analysis
Tata Consultancy Services Selling Certainty Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Tata Consultancy Services Selling Certainty Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Tata Consultancy Services Selling Certainty Case Study Solution has particular strengths that can be utilized to reduce the threats, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Tata Consultancy Services Selling Certainty Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position permits the company to consider numerous advancement opportunities with no worry of raising fund externally.
Together with the strengths, the business has specific weak points which might increase constraints for the company in executing its development program. The weaknesses of Tata Consultancy Services Selling Certainty Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is declining given that 2008, impacting Tata Consultancy Services Selling Certainty Case Study Analysis also, however the development could be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured particular threats to Tata Consultancy Services Selling Certainty Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Tata Consultancy Services Selling Certainty Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market in addition to existence of high competitors increases the risk of losing the customer base.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. However, the general financial performance of the business could be analyzed by using the graphs given up the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Tata Consultancy Services Selling Certainty Case Study Analysis is growing and the business is quite effective in attracting a large number of consumers at a possible price.
In addition to it, the 2nd graph which reveals the annual growth in the Tata Consultancy Services Selling Certainty Case Study Solution overall assets, reveals that the business is rather efficient in including worth to its possessions through its earnings. The development in possessions shows that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the distribution of total profits of the company. Huge 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 business sectors with a possible development to attain its future advancement goal.
PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Tata Consultancy Services Selling Certainty Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological development in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting Tata Consultancy Services Selling Certainty Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents provided in the virtual libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Tata Consultancy Services Selling Certainty Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 buyers requires high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Tata Consultancy Services Selling Certainty Case Study Analysis consist of;.
• Chemical Industry 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 might wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an immediate service to avoid the decreasing industry growth. Introduction of digital publishing could show to be an immediate option with low amount of danger for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should initially collects the data related to the customer demand, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
The development of the publishing market is decreasing since 2008, revealing a hazard to the company's long term presence, however the situation can be controlled by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.