Adding Social Media To The Marketing Mix Case Study Solution and Analysis
Adding Social Media To The Marketing Mix Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Adding Social Media To The Marketing Mix Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These factors include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Adding Social Media To The Marketing Mix Case Study Analysis has certain strengths that can be utilized to lower the threats, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Adding Social Media To The Marketing Mix Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong monetary position allows the company to consider numerous advancement opportunities with no fear of raising fund externally.
Together with the strengths, the business has particular weak points which could increase constraints for the company in executing its advancement program. The weaknesses of Adding Social Media To The Marketing Mix Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is declining considering that 2008, affecting Adding Social Media To The Marketing Mix Case Study Help too, but the growth could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has posed specific hazards to Adding Social Media To The Marketing Mix Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Adding Social Media To The Marketing Mix Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the hazard of losing the customer base.
Due to absence of data, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly overall revenues of Adding Social Media To The Marketing Mix Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is rather effective in drawing in a large number of customers at a potential rate.
In addition to it, the 2nd chart which reveals the annual growth in the Adding Social Media To The Marketing Mix Case Study Solution total assets, reveals that the business is rather effective in including value to its assets through its revenues. The growth in assets shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the circulation of overall revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a prospective growth to accomplish its future development goal.
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out helpful materials and so on. China has the highest population in the world with a high population development, revealing the increasing number of consumers of the Adding Social Media To The Marketing Mix Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Adding Social Media To The Marketing Mix Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the digital libraries on particular websites. The changing customer preferences towards digital learning increase the danger of alternative for the market.
Competitive competition 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 rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Adding Social Media To The Marketing Mix Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Adding Social Media To The Marketing Mix Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks third and second in numerous market sectors, with a major focus on educational publications. CIP serves 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 could wean the marketplace share of Adding Social Media To The Marketing Mix Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Adding Social Media To The Marketing Mix Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an instant service to prevent the declining market growth. Intro of digital publishing could prove to be an immediate option with low amount of threat for the company. Nevertheless, the business might likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially gathers the information related to the consumer demand, the potential markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves 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.
Although, the growth of the publishing market is decreasing considering that 2008, revealing a danger to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.