Coca Cola Strategic Marketing Analysis Case Study Solution and Analysis
Intro
Coca Cola Strategic Marketing Analysis Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing info and interaction services. Major business segments of the business include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major products consist of books, regulars, online media, exhibitions, research study reports etc. Coca Cola Strategic Marketing Analysis Case Study Analysis has become a specialized information company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and Coca Cola Strategic Marketing Analysis Case Study Solution in particular. These factors include;
• Entrance of the brand-new publishing companies in the market.
• 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 numerous concerns to the management at CPM that what could be the future of CMP in this scenario? 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Coca Cola Strategic Marketing Analysis Case Study Help has particular strengths that can be made use of to decrease the dangers, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Coca Cola Strategic Marketing Analysis Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the business to think about a number of advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Coca Cola Strategic Marketing Analysis Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, affecting Coca Cola Strategic Marketing Analysis Case Study Solution as well, but the growth might be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has postured particular dangers to Coca Cola Strategic Marketing Analysis Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Coca Cola Strategic Marketing Analysis Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market along with existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the annual overall profits of Coca Cola Strategic Marketing Analysis Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather effective in drawing in a large number of customers at a possible price.
Together with it, the second chart which reveals the annual growth in the Coca Cola Strategic Marketing Analysis Case Study Solution overall assets, reveals that the business is quite effective in including value to its properties through its revenues. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis concerning the distribution of overall revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Coca Cola Strategic Marketing Analysis Case Study Analysis organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading helpful materials etc. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the Coca Cola Strategic Marketing Analysis Case Study Help. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Coca Cola Strategic Marketing Analysis Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the documents presented in the digital libraries on particular websites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Coca Cola Strategic Marketing Analysis Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Coca Cola Strategic Marketing Analysis Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market sectors, with a significant concentrate on educational publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Coca Cola Strategic Marketing Analysis Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the prominent gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the declining market growth. Therefore, intro of digital publishing might prove to be an immediate option with low quantity of danger for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the data associated with the consumer demand, the potential markets, the government policies and the data related to the rivals presented in the market. After that, the company ought to decide one possible sector for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the business ought to go for the preliminary offering. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, revealing a risk to the company's long term existence, but the situation can be controlled by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
