Colgate Palmolive Co The Precision Toothbrush Case Study Solution and Analysis
Introduction
Colgate Palmolive Co The Precision Toothbrush Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Colgate Palmolive Co The Precision Toothbrush Case Study Help has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Colgate Palmolive Co The Precision Toothbrush Case Study Solution has particular strengths that can be utilized to reduce the hazards, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Colgate Palmolive Co The Precision Toothbrush Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense using its prior 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 risk and provide high value to its customers.
• Strong financial position allows the business to think about numerous advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its development program. The weak points of Colgate Palmolive Co The Precision Toothbrush Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting Colgate Palmolive Co The Precision Toothbrush Case Study Solution as well, however the development might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually positioned particular risks to Colgate Palmolive Co The Precision Toothbrush Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Colgate Palmolive Co The Precision Toothbrush Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry along with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total incomes of Colgate Palmolive Co The Precision Toothbrush Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a big number of customers at a prospective price.
In addition to it, the second graph which shows the annual development in the Colgate Palmolive Co The Precision Toothbrush Case Study Analysis total possessions, reveals that the business is quite efficient in adding worth to its possessions through its profits. The development in assets reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis relating to the distribution of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Colgate Palmolive Co The Precision Toothbrush Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting 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 growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Colgate Palmolive Co The Precision Toothbrush Case Study Help includes 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 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 Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Colgate Palmolive Co The Precision Toothbrush Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Colgate Palmolive Co The Precision Toothbrush Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks second and third in numerous market sectors, with a significant concentrate on instructional publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Colgate Palmolive Co The Precision Toothbrush Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate service to avoid the decreasing industry growth. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the consumer need, the possible markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the business should decide one prospective sector for its initial offering. It ought to collect research study that how it could separate its digital publishing from the existing rivals' items. The steps above the company must go for the initial offering. If the initial offering proves a success, the business needs to opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a hazard to the business's long term presence, but the situation can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
