Brand Loyalty Case Study Solution and Analysis
Brand Loyalty Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and Brand Loyalty Case Study Analysis in specific. These elements include;
• Entryway 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 change of the macro markets have raised a number of concerns 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 abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Brand Loyalty Case Study Help has certain strengths that can be utilized to decrease the threats, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Brand Loyalty Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the company to think about a number of advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Brand Loyalty Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
The development of the publishing industry is declining since 2008, impacting Brand Loyalty Case Study Analysis as well, but the development could be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has presented particular threats to Brand Loyalty Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Brand Loyalty Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the consumer base.
Due to lack of data, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total profits of Brand Loyalty Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a large number of consumers at a potential rate.
In addition to it, the second chart which reveals the annual development in the Brand Loyalty Case Study Solution overall assets, shows that the company is rather effective in adding worth to its assets through its incomes. The development in assets shows that the overall value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis relating to the distribution of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a potential growth to attain its future advancement goal.
PESTEL analysis could be conducted to discover the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Brand Loyalty Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. Along with it, the financial policies connected to the import of books affect the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Brand Loyalty 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 ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on certain websites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Brand Loyalty Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general 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 existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Brand Loyalty Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Brand Loyalty Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing market growth. The business could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially gathers the information related to the customer demand, the potential markets, the federal government guidelines and the information associated with the competitors provided in the market. After that, the business ought to decide one possible section for its initial offering. It needs to collect research study that how it could separate its digital publishing from the existing rivals' items. The steps above the business must go for the preliminary offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the company would have the ability to execute its digital publishing program.
The development of the publishing industry is declining considering that 2008, showing a hazard to the company's long term presence, but the scenario can be managed by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.