Coca Cola Strategic Marketing Analysis 2 Case Study Solution and Analysis
Coca Cola Strategic Marketing Analysis 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Coca Cola Strategic Marketing Analysis 2 Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation 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 important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Coca Cola Strategic Marketing Analysis 2 Case Study Solution has particular strengths that can be utilized to decrease the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Coca Cola Strategic Marketing Analysis 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong monetary position permits the business to consider several advancement opportunities with no fear of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Coca Cola Strategic Marketing Analysis 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
The growth of the publishing industry is declining considering that 2008, impacting Coca Cola Strategic Marketing Analysis 2 Case Study Help as well, but the development might be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competition in the publishing market has presented certain risks to Coca Cola Strategic Marketing Analysis 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Coca Cola Strategic Marketing Analysis 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the consumer base.
Due to absence of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly overall revenues of Coca Cola Strategic Marketing Analysis 2 Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite effective in attracting a big number of customers at a prospective price.
In addition to it, the 2nd graph which reveals the annual growth in the Coca Cola Strategic Marketing Analysis 2 Case Study Help overall assets, shows that the business is rather efficient in including worth to its possessions through its profits. The development in properties reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis relating to the distribution of overall earnings of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a potential development to achieve its future development objective.
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting Coca Cola Strategic Marketing Analysis 2 Case Study Analysis service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Coca Cola Strategic Marketing Analysis 2 Case Study Solution in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books impact the overall service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Ecological forces impacting Coca Cola Strategic Marketing Analysis 2 Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal 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, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Coca Cola Strategic Marketing Analysis 2 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
CMP runs in a highly competitive industry 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 rivals of Coca Cola Strategic Marketing Analysis 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Coca Cola Strategic Marketing Analysis 2 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
As the choices are moving towards digital publishing and the business need an instant solution to prevent the decreasing market development. The business could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the data related to the customer need, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term existence, but the situation can be managed by thinking about a development 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 brand-new markets.