Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Solution and Analysis
Intro
Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing info and communication services. Significant company sectors of the company consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports and so on. Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help has become a specialized information supplier and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing industry in basic and Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns 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 utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Solution has certain strengths that can be used to lower the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position permits the company to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase restraints for the business in executing its advancement program. The weak points of Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help too, however the development could be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has positioned certain threats to Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be calculated. Nevertheless, the overall financial performance of the business could be analyzed by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Solution is growing and the company is rather efficient in bring in a a great deal of clients at a potential cost.
Together with it, the 2nd chart which shows the annual development in the Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help total possessions, reveals that the business is quite effective in including worth to its possessions through its profits. The development in properties shows that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the offered information could be the analysis regarding the circulation of overall profits of the company. Major part of the revenues 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 sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the total business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of customers of the Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help. Nevertheless, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry 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 Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a major focus on educational publications. CIP functions 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 might wean the marketplace share of Altruism And Hedonism Review And Discussion Of Recent Findings In The Mmarketing And Consumer Behavior Literature Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective 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 introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-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 in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining industry development. Intro of digital publishing could prove to be an immediate option with low quantity of risk for the business. Nevertheless, the company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the consumer need, the potential markets, the federal government guidelines and the data associated with the rivals presented in the market. After that, the business must decide one prospective sector for its preliminary offering. It ought to collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the business ought to choose the initial offering. The business should 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 industry is declining given that 2008, showing a danger to the business's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
