Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Solution and Analysis
Introduction
Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing information and communication services. Major business sectors of the company consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports etc. Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Analysis has ended up being a specialized info service provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Analysis in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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 Power Corporate Social Responsibility And Sustainability 2 Case Study Analysis has particular strengths that can be used to decrease the hazards, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position permits the business to think about a number of advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase restraints for the company in implementing its development program. The weaknesses of Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Help as well, but the growth might be revived by availing particular chances presented in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has posed particular risks to Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be computed. The overall monetary efficiency of the business might be evaluated by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Solution is growing and the business is quite effective in drawing in a a great deal of clients at a potential price.
Together with it, the 2nd chart which reveals the annual development in the Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Solution total possessions, shows that the company is quite efficient in adding value to its properties through its profits. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given information might be the analysis concerning the circulation of overall revenues of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful products etc. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Tata Power Corporate Social Responsibility And Sustainability 2 Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the virtual libraries on certain sites. The altering consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Tata Power Corporate Social Responsibility And Sustainability 2 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 overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence 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 Power Corporate Social Responsibility And Sustainability 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate solution to avoid the decreasing market development. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should first gathers the information associated with the customer demand, the potential markets, the federal government regulations and the data associated with the competitors provided in the market. After that, the business needs to decide one possible segment for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing rivals' products. The steps above the company should go for the preliminary offering. If the initial offering proves a success, the business should opt for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
