Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution and Analysis
Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help has specific strengths that can be made use of to lower the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the business to consider numerous development chances with no fear of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restraints for the business in executing its development program. The weak points of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its dependence over the Chinese markets to attain long term development.
The growth of the publishing industry is decreasing considering that 2008, impacting Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help as well, however the development could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has presented certain risks to Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the danger of losing the consumer base.
The company 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 might be evaluated by using the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution is growing and the business is rather efficient in drawing in a a great deal of consumers at a prospective price.
Together with it, the second graph which shows the annual development in the Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help total assets, shows that the business is rather effective in adding worth to its properties through its revenues. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the circulation of total incomes of the business. Huge part of the earnings 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 business sectors with a prospective development to accomplish its future advancement objective.
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies related to the import of books impact the overall service at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis. However, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing could lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Threat of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the files presented in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in different market segments, with a major concentrate on instructional publications. CIP functions as a risk 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 marketplace share of Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Can Brand Image Move Upwards After Sideways Strategic Approach To Brand Placements Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Threat 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 capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items 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 recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an instant solution to avoid the decreasing industry development. Introduction of digital publishing might prove to be an immediate service with low quantity of risk for the company. The business might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first gathers the data related to the customer need, the possible markets, the government regulations and the data associated with the competitors provided in the market. After that, the business should choose one potential segment for its initial offering. It ought to gather research study that how it might separate its digital publishing from the existing rivals' items. The actions above the company should go for the initial offering. The business should go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
The development of the publishing industry is declining because 2008, showing a hazard to the business's long term presence, but the situation can be controlled by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the new markets.