Birzeit Pharmaceutical Company Marketing From Palestine Case Study Solution and Analysis
Introduction
Birzeit Pharmaceutical Company Marketing From Palestine Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering information, processing info and communication services. Significant company segments of the business consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports and so on. Birzeit Pharmaceutical Company Marketing From Palestine Case Study Help has actually ended up being a specialized details supplier and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and Birzeit Pharmaceutical Company Marketing From Palestine Case Study Help in particular. These factors consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business 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
Birzeit Pharmaceutical Company Marketing From Palestine Case Study Help has specific strengths that can be utilized to decrease the risks, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Birzeit Pharmaceutical Company Marketing From Palestine Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong monetary position enables the company to think about a number of advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restrictions for the company in executing its development program. The weaknesses of Birzeit Pharmaceutical Company Marketing From Palestine Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly 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 development.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Birzeit Pharmaceutical Company Marketing From Palestine Case Study Help too, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed certain risks to Birzeit Pharmaceutical Company Marketing From Palestine Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Birzeit Pharmaceutical Company Marketing From Palestine Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market in addition to existence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly overall revenues of Birzeit Pharmaceutical Company Marketing From Palestine Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is quite effective in drawing in a large number of consumers at a prospective price.
Together with it, the second chart which reveals the yearly growth in the Birzeit Pharmaceutical Company Marketing From Palestine Case Study Solution overall properties, reveals that the business is rather effective in including value to its assets through its incomes. The development in assets shows that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis regarding the circulation of overall incomes of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Birzeit Pharmaceutical Company Marketing From Palestine Case Study Analysis organisation are high. The federal 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 costs of paper, the income level of consumers, 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.
Social and demographical forces include the population development, the consumer's choices towards reading helpful products and so on. China has the highest population in the world with a high population development, revealing the increasing number of customers of the Birzeit Pharmaceutical Company Marketing From Palestine Case Study Analysis. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Birzeit Pharmaceutical Company Marketing From Palestine Case Study Solution consists of 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 non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Birzeit Pharmaceutical Company Marketing From Palestine Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Birzeit Pharmaceutical Company Marketing From Palestine Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in numerous market sectors, with a major focus on academic publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Birzeit Pharmaceutical Company Marketing From Palestine Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Birzeit Pharmaceutical Company Marketing From Palestine Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the declining market development. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company ought to first gathers the data associated with the consumer demand, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. After that, the company needs to decide one prospective section for its preliminary offering. It ought to collect research study that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the company must opt for the preliminary offering. The business must go for the other markets if the initial offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a danger to the company's long term existence, but the scenario can be managed by thinking about an advancement strategy 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 threat of failure for entryway in the new markets.
