Brand Equity Case Study Solution and Analysis
Brand Equity Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Brand Equity Case Study Solution in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation 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 used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Brand Equity Case Study Analysis has certain strengths that can be utilized to reduce the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Brand Equity Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong financial position enables the business to consider numerous development chances without any fear of raising fund externally.
Together with the strengths, the business has particular weak points which might increase constraints for the company in implementing its advancement program. The weak points of Brand Equity Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is decreasing since 2008, impacting Brand Equity Case Study Solution as well, but the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually postured certain risks to Brand Equity Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Brand Equity Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the consumer base.
The company has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be computed. The total monetary performance of the business could be examined by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Brand Equity Case Study Help is growing and the business is quite effective in bring in a a great deal of customers at a prospective cost.
In addition to it, the second chart which shows the annual development in the Brand Equity Case Study Help overall possessions, shows that the business is quite efficient in adding value to its properties through its incomes. The development in possessions reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis regarding the circulation of overall earnings of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a possible growth to attain its future development goal.
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out helpful materials etc. China has the greatest population in the world with a high population growth, showing the increasing variety of consumers of the Brand Equity Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Ecological forces impacting 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 should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the documents presented in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Brand Equity Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 buyers requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Brand Equity Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a major focus on educational publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Brand Equity Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Brand Equity Case Study Solution and CIP. It is also one of the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior focus 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 items in the market.
As the choices are moving towards digital publishing and the company need an immediate option to prevent the decreasing industry development. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially gathers the information connected to the consumer demand, the potential markets, the government guidelines and the data related to the competitors provided in the market. After that, the business ought to decide one potential section for its preliminary offering. It should gather research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the company must opt for the preliminary offering. If the preliminary offering proves a success, the company needs to choose the other markets. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining because 2008, showing a risk to the business's long term existence, however the scenario can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.