Tata Motors Becoming A Global Contender Case Study Solution and Analysis
Introduction
Tata Motors Becoming A Global Contender Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering information, processing info and communication services. Major organisation sectors of the business include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports and so on. Tata Motors Becoming A Global Contender Case Study Analysis has actually become a specialized details company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Tata Motors Becoming A Global Contender Case Study Help in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be used 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 Motors Becoming A Global Contender Case Study Analysis has certain strengths that can be used to decrease the threats, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Tata Motors Becoming A Global Contender Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the company to consider several development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase restrictions for the business in implementing its development program. The weak points of Tata Motors Becoming A Global Contender Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting Tata Motors Becoming A Global Contender Case Study Solution as well, but the development might be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has postured particular dangers to Tata Motors Becoming A Global Contender Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Tata Motors Becoming A Global Contender Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be computed. The overall financial performance of the company could be analyzed by utilizing the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Tata Motors Becoming A Global Contender Case Study Analysis is growing and the business is rather efficient in drawing in a large number of clients at a possible rate.
In addition to it, the second chart which shows the yearly growth in the Tata Motors Becoming A Global Contender Case Study Analysis overall possessions, reveals that the business is rather effective in adding worth to its assets through its profits. The growth in properties shows that the total worth of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the circulation of total revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting Tata Motors Becoming A Global Contender Case Study Help business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Tata Motors Becoming A Global Contender Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the total business at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing number of consumers of the Tata Motors Becoming A Global Contender Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Tata Motors Becoming A Global Contender Case Study Analysis includes the concerns of ecological neighborhoods over the use 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 should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the digital libraries on particular sites. The altering customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Tata Motors Becoming A Global Contender Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Tata Motors Becoming A Global Contender Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Tata Motors Becoming A Global Contender Case Study Analysis and CIP. It is likewise one of the prominent 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 reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant service to avoid the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information associated with the consumer demand, the possible markets, the government regulations and the information associated with the competitors presented in the market. After that, the business must decide one potential segment for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing rivals' items. The actions above the business ought to go for the preliminary offering. If the initial offering shows a success, the company should choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term existence, but the scenario can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
