Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Solution and Analysis
Intro
Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in general and Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Help in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of 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 Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Help has specific strengths that can be made use of to minimize the dangers, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position enables the business to consider several advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase constraints for the business in executing its development program. The weaknesses of Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining since 2008, impacting Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Analysis as well, but the growth could be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has postured particular hazards to Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. However, the general financial efficiency of the company could be evaluated by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Solution is growing and the company is quite efficient in drawing in a large number of consumers at a potential rate.
In addition to it, the second chart which shows the annual growth in the Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Analysis total possessions, shows that the business is quite effective in adding value to its properties through its earnings. The development in assets reveals that the total worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis concerning the circulation of total profits of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Help business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies connected to the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth 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 ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the virtual libraries on certain websites. The altering customer choices towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Tata Consultancy Services Sustaining Growth Momentum In China 2010 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant option to avoid the declining industry development. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to first collects the data associated with the customer demand, the potential markets, the federal government regulations and the information related to the competitors provided in the market. After that, the business should decide one possible section for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company ought to choose the preliminary offering. If the initial offering proves a success, the business needs to go for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a threat to the company's long term existence, however the circumstance can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
