Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution and Analysis
Introduction
Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing information and interaction services. Major business sectors of the company include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Analysis has actually ended up being a specialized details provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution has particular strengths that can be used to lower the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position permits the company to think about a number of development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in executing its advancement program. The weak points of Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, impacting Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution as well, however the growth might be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific hazards to Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall revenues of Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite effective in bring in a large number of clients at a potential price.
Along with it, the second graph which shows the yearly growth in the Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Help total properties, reveals that the business is rather effective in including worth to its assets through its incomes. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the circulation of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous 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 provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the financial policies connected to the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative products etc. China has the greatest population on the planet with a high population growth, showing the increasing number of customers of the Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology along with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Help includes the concerns of environmental 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates 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 Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks third and second in various market segments, with a major concentrate on educational publications. 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 marketplace share of Tech Mahindra And The Acquisition Of Satyam Computers A Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus 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 products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant option to prevent the declining market growth. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first gathers the data associated with the consumer demand, the possible markets, the federal government regulations and the data related to the competitors provided in the market. After that, the company needs to choose one prospective section for its preliminary offering. It needs to collect research that how it might separate its digital publishing from the existing competitors' items. After all the actions above the business must choose the preliminary offering. If the initial offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a threat to the business's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
