Brand Loyalty Case Study Solution and Analysis
Introduction
Brand Loyalty Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and interaction services. Major service sections of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant items include books, periodicals, online media, exhibitions, research reports etc. Brand Loyalty Case Study Solution has actually ended up being a specialized information provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and Brand Loyalty Case Study Solution in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement 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 company 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
Brand Loyalty Case Study Help has particular strengths that can be made use of to lower the hazards, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Brand Loyalty Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position permits the company to consider several advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Brand Loyalty Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Brand Loyalty Case Study Help as well, however the growth could be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business could also introduce 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 using its huge funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific risks to Brand Loyalty Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Brand Loyalty Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the annual overall revenues of Brand Loyalty Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather effective in attracting a big number of clients at a possible price.
Together with it, the second chart which shows the annual development in the Brand Loyalty Case Study Solution total assets, shows that the business is rather efficient in including worth to its possessions through its profits. The development in assets reveals that the overall value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis concerning the circulation of total revenues of the business. Huge part of the profits of CMP originates 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 advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Brand Loyalty Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the general company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful products etc. China has the highest population worldwide with a high population development, revealing the increasing variety of consumers of the Brand Loyalty Case Study Solution. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Brand Loyalty Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the documents presented in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Brand Loyalty Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason 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 existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Brand Loyalty Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Brand Loyalty Case Study Help and CIP. It is also one of the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing 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 potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. Intro of digital publishing could prove to be an instant service with low amount of risk for the company. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first gathers the information associated with the customer need, the prospective markets, the federal government policies and the data associated with the rivals provided in the market. After that, the business should decide one potential section for its preliminary offering. It should collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the company should go for the initial offering. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a threat to the company's long term presence, but the circumstance can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
