Brand Management Concepts Case Study Solution and Analysis
Brand Management Concepts Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing info and communication services. Significant company sections of the business consist of; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. Brand Management Concepts Case Study Help has ended up being a specialized information provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and Brand Management Concepts Case Study Help in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Brand Management Concepts Case Study Help has particular strengths that can be used to minimize the hazards, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Brand Management Concepts Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position allows the business to consider several advancement opportunities with no worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Brand Management Concepts Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is decreasing since 2008, affecting Brand Management Concepts Case Study Help as well, but the development could be restored by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has actually postured specific threats to Brand Management Concepts Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Brand Management Concepts Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
The business has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be calculated. The total monetary efficiency of the business could be examined by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Brand Management Concepts Case Study Help is growing and the business is rather efficient in drawing in a large number of consumers at a potential cost.
Along with it, the 2nd chart which shows the annual growth in the Brand Management Concepts Case Study Solution total assets, shows that the company is quite effective in adding worth to its assets through its earnings. The development in properties reveals that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis relating to the circulation of total profits 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 business could move towards other organisation sectors with a possible development to achieve its future advancement objective.
PESTEL analysis could be performed to discover the various external forces affecting the performance 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).
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting Brand Management Concepts Case Study Help organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Brand Management Concepts Case Study Help in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the general business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Brand Management Concepts Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Brand Management Concepts Case Study Analysis consist of 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 provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the buyers requires high quality files at competitive costs.
CMP operates in a highly competitive industry with the existence of large number 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 Management Concepts Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks third and second in numerous market sections, with a major focus on educational publications. 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 might wean the marketplace share of Brand Management Concepts Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Brand Management Concepts Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior focus 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 products in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining industry growth. For that reason, intro of digital publishing could prove to be an instant option with low amount of danger for the company. The business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should first collects the information related to the customer demand, the prospective markets, the government policies and the information related to the rivals provided in the market. After that, the business should choose one potential sector for its initial offering. It must gather research that how it might differentiate its digital publishing from the existing competitors' products. The actions above the company need to go for the preliminary offering. If the initial offering shows a success, the company should opt for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.