Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution and Analysis
Introduction
Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation 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 business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution has certain strengths that can be used to minimize the hazards, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position allows the business to consider several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weaknesses of Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Help as well, however the growth could be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific threats to Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be calculated. The total monetary performance of the company might be analyzed by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution is growing and the company is quite efficient in bring in a large number of consumers at a possible rate.
In addition to it, the second graph which reveals the annual development in the Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution total possessions, shows that the company is rather effective in including worth to its assets through its revenues. The growth in assets shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the distribution of overall incomes of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution includes the concerns of environmental communities over the use 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 should 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 controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the files presented in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Help include;.
• Chemical Market 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 comparable kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sections, with a major focus on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Ambient Communication How To Engage Consumers In Urban Touch Points Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an instant service to avoid the declining industry growth. Intro of digital publishing could prove to be an immediate solution with low amount of danger for the business. However, 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 company needs to initially collects the information related to the consumer need, the prospective markets, the government regulations and the data associated with the rivals provided in the market. After that, the company must choose one potential section for its preliminary offering. It needs to gather research that how it might differentiate its digital publishing from the existing competitors' items. The actions above the company ought to go for the preliminary offering. If the preliminary offering shows a success, the company should opt for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a threat to the company's long term existence, but the circumstance can be controlled by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
