Tata Nano The Peoples Car Case Study Solution and Analysis
Introduction
Tata Nano The Peoples Car Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Tata Nano The Peoples Car Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change 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 abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tata Nano The Peoples Car Case Study Analysis has specific strengths that can be used to decrease the risks, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Tata Nano The Peoples Car Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the company to consider numerous development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of Tata Nano The Peoples Car Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, 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 development. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Tata Nano The Peoples Car Case Study Analysis too, however the growth could be restored by availing particular chances presented in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually presented specific threats to Tata Nano The Peoples Car Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Tata Nano The Peoples Car Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total profits of Tata Nano The Peoples Car Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in drawing in a large number of clients at a potential price.
In addition to it, the 2nd chart which shows the annual growth in the Tata Nano The Peoples Car Case Study Analysis total properties, reveals that the business is quite efficient in adding worth to its possessions through its revenues. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis regarding the distribution of overall earnings of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Tata Nano The Peoples Car Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the economic policies associated with the import of books impact the overall company at CPM. However, China's financial conditions are quite 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 conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Tata Nano The Peoples Car Case Study Help consists of the issues of ecological communities 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 ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the threat 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 rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Tata Nano The Peoples Car Case Study Solution consist of 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.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Tata Nano The Peoples Car Case Study Solution include;.
• 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 present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant service to avoid the declining industry development. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the information connected to the consumer demand, the prospective markets, the government policies and the data associated with the competitors provided in the market. After that, the business needs to decide one possible section for its preliminary offering. It should gather research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business should opt for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a threat to the company's long term existence, but the circumstance can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
