Tata Power Corporate Social Responsibility And Sustainability Case Study Solution and Analysis
Intro
Tata Power Corporate Social Responsibility And Sustainability 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 supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Tata Power Corporate Social Responsibility And Sustainability Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be used 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 Case Study Analysis has certain strengths that can be used to minimize the risks, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Tata Power Corporate Social Responsibility And Sustainability Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position allows the business to think about several development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Tata Power Corporate Social Responsibility And Sustainability Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, 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 ought to propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Tata Power Corporate Social Responsibility And Sustainability Case Study Analysis as well, but the growth could be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed particular dangers to Tata Power Corporate Social Responsibility And Sustainability Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Tata Power Corporate Social Responsibility And Sustainability Case Study Solution due to the consumer shift towards digital 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 rivals can gain a strong consumer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual overall earnings of Tata Power Corporate Social Responsibility And Sustainability Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite effective in attracting a large number of clients at a prospective rate.
In addition to it, the 2nd graph which reveals the annual development in the Tata Power Corporate Social Responsibility And Sustainability Case Study Analysis total properties, shows that the business is quite effective in including worth to its properties through its profits. The development in assets shows that the total value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis regarding the distribution of total profits of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant 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 directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Tata Power Corporate Social Responsibility And Sustainability Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Tata Power Corporate Social Responsibility And Sustainability Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Tata Power Corporate Social Responsibility And Sustainability Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Tata Power Corporate Social Responsibility And Sustainability Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in various market segments, with a major concentrate on academic publications. 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 Tata Power Corporate Social Responsibility And Sustainability Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Tata Power Corporate Social Responsibility And Sustainability Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item 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 service sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an instant service to prevent the declining industry growth. For that reason, introduction of digital publishing could prove to be an instant option with low quantity of risk for the company. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business should initially gathers the information related to the customer demand, the possible markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, showing a hazard to the business's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
