Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Solution and Analysis
Intro
Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of 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 abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Solution has specific strengths that can be used to decrease the threats, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position allows the business to consider several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional 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 certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining since 2008, affecting Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Analysis as well, but the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has postured particular risks to Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be computed. The general monetary efficiency of the company could be examined by using the charts offered 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 growth rate, revealing that the annual need of the products of Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Help is growing and the company is quite efficient in attracting a large number of customers at a prospective rate.
Together with it, the second graph which reveals the yearly growth in the Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Analysis total possessions, shows that the company is rather efficient in adding value to its possessions through its profits. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the circulation of total earnings of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the general organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out informative materials etc. China has the highest population in the world with a high population development, revealing the increasing variety of customers of the Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology along with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Cause Related Marketing 3m As A Corporate Sponsor Of The Canadian Breast Cancer Foundation Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing market growth. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first gathers the data associated with the consumer need, the possible markets, the federal government policies and the data related to the competitors presented in the market. After that, the company needs to choose one potential section for its preliminary offering. It ought to gather research that how it could distinguish its digital publishing from the existing competitors' items. The steps above the business must go for the preliminary offering. The company should go for the other markets if the preliminary offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a danger to the business's long term presence, but the situation can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
