The Tata Nano The Peoples Car 2 Case Study Solution and Analysis
Intro
The Tata Nano The Peoples Car 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing details and communication services. Significant service sections of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products include books, regulars, online media, exhibits, research reports etc. The Tata Nano The Peoples Car 2 Case Study Analysis has actually become a specialized information service provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and The Tata Nano The Peoples Car 2 Case Study Solution in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Tata Nano The Peoples Car 2 Case Study Solution has particular strengths that can be used to decrease the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Tata Nano The Peoples Car 2 Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position enables the business to think about numerous development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase constraints for the business in implementing its development program. The weak points of The Tata Nano The Peoples Car 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting The Tata Nano The Peoples Car 2 Case Study Analysis as well, however the growth might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented particular threats to The Tata Nano The Peoples Car 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Tata Nano The Peoples Car 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence 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 acquire a strong customer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be determined. The general monetary performance of the company could be evaluated by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of The Tata Nano The Peoples Car 2 Case Study Solution is growing and the company is quite efficient in attracting a a great deal of consumers at a potential cost.
Along with it, the second graph which shows the annual development in the The Tata Nano The Peoples Car 2 Case Study Help total properties, shows that the business is quite efficient in adding worth to its assets through its earnings. The growth in possessions reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered information could be the analysis regarding the distribution of overall earnings of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting The Tata Nano The Peoples Car 2 Case Study Solution organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Tata Nano The Peoples Car 2 Case Study Help includes the concerns of ecological neighborhoods over the use 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 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 Design might be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the digital libraries on particular sites. The changing customer choices towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Tata Nano The Peoples Car 2 Case Study Help consist of the providers of the paper for releasing files. 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.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Tata Nano The Peoples Car 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing 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 concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an instant service to prevent the declining market development. Introduction of digital publishing might show to be an instant service with low quantity of threat for the business. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the data related to the consumer demand, the potential markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, revealing a threat to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
