Brand Equity Case Study Solution and Analysis
Introduction
Brand Equity Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Brand Equity Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the abilities 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Brand Equity Case Study Solution has particular strengths that can be utilized to decrease the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Brand Equity Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the business to think about numerous advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of Brand Equity Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, 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 must propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Brand Equity Case Study Analysis as well, but the growth might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually postured particular risks to Brand Equity Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Brand Equity Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be computed. Nevertheless, the total monetary performance of the business could be analyzed by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Brand Equity Case Study Help is growing and the business is quite effective in bring in a a great deal of clients at a prospective price.
Along with it, the second chart which shows the yearly development in the Brand Equity Case Study Analysis total assets, reveals that the company is rather efficient in including value to its possessions through its profits. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis regarding the circulation of total earnings of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful materials and so on. China has the greatest population in the world with a high population growth, revealing the increasing variety of customers of the Brand Equity Case Study Solution. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Brand Equity Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding 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 Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the digital libraries on certain websites. The altering customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Brand Equity Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier 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 market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Brand Equity Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant concentrate on academic publications. CIP functions as a hazard 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 market share of Brand Equity Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining industry development. For that reason, intro of digital publishing might prove to be an instant option with low amount of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should first gathers the information related to the customer need, the potential markets, the government policies and the information related to the competitors provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, revealing a hazard to the business's long term existence, however the circumstance can be controlled by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
