Brand Management Concepts Case Study Solution and Analysis
Brand Management Concepts Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing info and communication services. Major service segments of the company consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Brand Management Concepts Case Study Analysis has actually ended up being a specialized info company and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Brand Management Concepts Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Brand Management Concepts Case Study Help has particular strengths that can be made use of to reduce the hazards, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Brand Management Concepts Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the business to consider numerous advancement chances without any fear of raising fund externally.
Along with the strengths, the business has certain weak points which might increase constraints for the company in executing its development program. The weak points of Brand Management Concepts Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is declining since 2008, affecting Brand Management Concepts Case Study Help too, but the development might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented certain hazards to Brand Management Concepts Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Brand Management Concepts Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the danger of losing the consumer base.
The company has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be determined. Nevertheless, the general financial performance of the company might be examined by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Brand Management Concepts Case Study Help is growing and the business is quite efficient in drawing in a large number of clients at a possible cost.
In addition to it, the second chart which reveals the yearly development in the Brand Management Concepts Case Study Help total properties, reveals that the business is rather efficient in adding value to its assets through its earnings. The development in possessions shows that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis relating to the circulation of overall profits of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential development to attain its future advancement objective.
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces impacting Brand Management Concepts Case Study Help company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Brand Management Concepts Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the virtual libraries on specific websites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Brand Management Concepts Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP operates in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Brand Management Concepts Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in numerous market sectors, with a major focus on educational publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Brand Management Concepts Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Brand Management Concepts Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the decreasing market growth. Intro of digital publishing could show to be an instant option with low amount of threat for the company. Nevertheless, the business could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first collects the information related to the customer need, the potential markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing industry is decreasing because 2008, showing a risk to the company's long term existence, but the situation can be managed by considering an advancement plan in the future. The business could think about 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 new markets.