Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution and Analysis
Introduction
Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing details and communication services. Significant service segments of the business include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its significant products include books, regulars, online media, exhibitions, research study reports etc. Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help has ended up being a specialized details service provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis in particular. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
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 important experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis has certain strengths that can be made use of to minimize the threats, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the business to consider several advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution are given as follows;
• Despite of being a science and technology 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 growth. It ought to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing because 2008, affecting Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution as well, but the development could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually presented particular risks to Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be determined. However, the overall financial performance of the business could be examined by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis is growing and the company is quite effective in bring in a large number of customers at a potential cost.
In addition to it, the second graph which reveals the annual growth in the Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis total possessions, shows that the business is quite effective in including worth to its properties through its incomes. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the distribution of overall profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals 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 Celebration of China. It could be stated that the overall political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general company at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the digital libraries on certain websites. The changing customer choices towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the decreasing industry development. Introduction of digital publishing might show to be an instant option with low amount of threat for the company. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information connected to the customer need, the possible markets, the federal government regulations and the data related to the competitors presented in the market. After that, the business ought to decide one prospective section for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business should go for the preliminary offering. The company needs to go for the other markets if the initial offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a threat to the company's long term existence, but the situation can be managed by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
