The Suzlon Edge 2 Case Study Solution and Analysis
Intro
The Suzlon Edge 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and The Suzlon Edge 2 Case Study Help in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Suzlon Edge 2 Case Study Solution has certain strengths that can be utilized to decrease the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Suzlon Edge 2 Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong monetary position permits the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase constraints for the business in executing its advancement program. The weak points of The Suzlon Edge 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting The Suzlon Edge 2 Case Study Analysis also, but the development might be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has posed specific dangers to The Suzlon Edge 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of The Suzlon Edge 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to presence of high competition increases the hazard of losing the client base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be computed. The overall monetary efficiency of the business could be examined by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of The Suzlon Edge 2 Case Study Help is growing and the business is rather effective in drawing in a large number of customers at a potential price.
In addition to it, the second chart which shows the annual development in the The Suzlon Edge 2 Case Study Solution overall possessions, reveals that the business is rather effective in including value to its assets through its incomes. The development in properties reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis concerning the circulation of total revenues of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces affecting the efficiency of the business and the current 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 considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting The Suzlon Edge 2 Case Study Help service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative materials and so on. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the The Suzlon Edge 2 Case Study Analysis. However, the customer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Suzlon Edge 2 Case Study Help consists of the issues of environmental communities over the usage 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 should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Suzlon Edge 2 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Suzlon Edge 2 Case Study Solution include;.
• Chemical Industry 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 might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as The Suzlon Edge 2 Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 sectors to the 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 in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an instant service to prevent the declining market development. Intro of digital publishing could prove to be an instant service with low quantity of danger for the business. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must initially gathers the data connected to the customer demand, the possible markets, the government regulations and the data connected to the rivals provided in the market. After that, the company must choose one prospective segment for its preliminary offering. It must collect research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company should go for the preliminary offering. The company must go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a danger to the business's long term presence, but the scenario can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
