Adding Social Media To The Marketing Mix Case Study Solution and Analysis
Intro
Adding Social Media To The Marketing Mix Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing info and interaction services. Significant organisation sections of the business include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports and so on. Adding Social Media To The Marketing Mix Case Study Help has actually become a specialized info provider and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and Adding Social Media To The Marketing Mix Case Study Help in particular. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement 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 important experience, technical resources and the capabilities of the company 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
Adding Social Media To The Marketing Mix Case Study Solution has particular strengths that can be made use of to minimize the risks, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Adding Social Media To The Marketing Mix Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase constraints for the business in implementing its advancement program. The weak points of Adding Social Media To The Marketing Mix Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Adding Social Media To The Marketing Mix Case Study Analysis too, however the growth might be revived by availing specific opportunities presented in the market. The marketplace opportunities 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 could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has postured specific dangers to Adding Social Media To The Marketing Mix Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Adding Social Media To The Marketing Mix Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly overall revenues of Adding Social Media To The Marketing Mix Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in attracting a large number of clients at a potential rate.
Along with it, the second chart which shows the yearly growth in the Adding Social Media To The Marketing Mix Case Study Analysis total possessions, reveals that the company is quite efficient in including value to its possessions through its incomes. The development in properties reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the circulation of overall revenues of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP service are high. The federal 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 total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative materials and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the Adding Social Media To The Marketing Mix Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Adding Social Media To The Marketing Mix Case Study Solution includes the issues 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the documents provided in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Adding Social Media To The Marketing Mix Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Adding Social Media To The Marketing Mix Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a major focus on educational publications. CIP serves as a danger 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 Adding Social Media To The Marketing Mix Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition 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 business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an instant solution to avoid the decreasing market development. For that reason, intro of digital publishing might show to be an immediate option with low amount of danger for the business. The business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer demand, the prospective markets, the government regulations and the information connected to the competitors presented in the market. After that, the business should choose one prospective segment for its initial offering. It should gather research study that how it might separate its digital publishing from the existing rivals' products. After all the steps above the company need to go for the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a threat to the company's long term presence, however the circumstance can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
