Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution and Analysis
Introduction
Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing information and communication services. Major business segments of the business consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution has ended up being a specialized info company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement 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 important experience, technical resources and the capabilities of the company 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 Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution has particular strengths that can be used to lower the dangers, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position enables the company to think about a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, impacting Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution as well, but the growth might be restored by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has postured certain risks to Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be computed. The overall financial efficiency of the business could be evaluated by using the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Help is growing and the business is quite effective in bring in a a great deal of customers at a possible cost.
Together with it, the 2nd graph which reveals the annual growth in the Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Help total properties, shows that the company is quite effective in adding worth to its possessions through its earnings. The development in assets shows that the total worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis regarding the distribution of overall profits of the company. Major 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 organisation segments with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the total political forces impacting Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful materials and so on. China has the highest population worldwide with a high population growth, showing the increasing number of customers of the Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Help. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized 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.
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 Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Tata Consultancy Services Sustaining Growth Momentum In China 2010 Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business 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 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus 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
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the declining market growth. Therefore, introduction of digital publishing might show to be an instant option with low quantity of threat for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially gathers the data related to the customer demand, the possible markets, the federal government policies and the information connected to the competitors presented in the market. After that, the business needs to choose one possible sector for its initial offering. It ought to collect research that how it might distinguish its digital publishing from the existing rivals' products. After all the steps above the business need to go for the initial offering. If the initial offering proves a success, the company should opt 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 since 2008, showing a danger to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
