Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution and Analysis
Intro
Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 abilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution has particular strengths that can be made use of to reduce the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position allows the business to think about several development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, affecting Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Help as well, however the growth might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually presented particular hazards to Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly overall earnings of Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a large number of customers at a prospective cost.
Together with it, the 2nd graph which reveals the annual development in the Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution overall properties, shows that the company is quite effective in adding value to its possessions through its earnings. The development in assets shows that the total value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies related to the import of books affect the overall organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products and so on. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution consist of the suppliers of the paper for publishing 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 Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Tata Steel Limited Convertible Alternative Reference Securities B 2 Case Study Help 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 exact same duration, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks third and second in various market segments, with a significant concentrate on academic publications. CIP acts as a risk for CMP as it could 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 Steel Limited Convertible Alternative Reference Securities B 2 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• 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 consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing market development. Therefore, introduction of digital publishing could show to be an instant option with low amount of risk for the company. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company needs to first collects the information related to the consumer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a danger to the business's long term presence, but the circumstance can be controlled by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
