Coca Cola Strategic Marketing Analysis Case Study Solution and Analysis
Coca Cola Strategic Marketing Analysis Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and Coca Cola Strategic Marketing Analysis Case Study Analysis in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns 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 company sustain its long term competitive position in future?
Coca Cola Strategic Marketing Analysis Case Study Help has certain strengths that can be used to reduce the hazards, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Coca Cola Strategic Marketing Analysis Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position allows the business to think about several advancement chances without any fear of raising fund externally.
Along with the strengths, the company has certain weak points which might increase restraints for the company in implementing its development program. The weak points of Coca Cola Strategic Marketing Analysis Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing market is decreasing given that 2008, impacting Coca Cola Strategic Marketing Analysis Case Study Solution as well, but the growth could be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed specific threats to Coca Cola Strategic Marketing Analysis Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Coca Cola Strategic Marketing Analysis Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market together with presence of high competitors increases the danger of losing the client base.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual total incomes of Coca Cola Strategic Marketing Analysis Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather effective in drawing in a big number of customers at a potential cost.
Along with it, the 2nd chart which reveals the yearly growth in the Coca Cola Strategic Marketing Analysis Case Study Solution total possessions, shows that the business is rather effective in including value to its assets through its earnings. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the circulation of overall revenues of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a potential development to accomplish its future advancement goal.
PESTEL analysis could be conducted to find out the various external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Coca Cola Strategic Marketing Analysis Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the general organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative materials and so on. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the Coca Cola Strategic Marketing Analysis Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Coca Cola Strategic Marketing Analysis Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the documents provided in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers 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.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Coca Cola Strategic Marketing Analysis Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might 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 situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Coca Cola Strategic Marketing Analysis Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business need an immediate option to avoid the declining market growth. The company could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company needs to first gathers the information related to the customer demand, the potential markets, the government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.