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Colgate Palmolive Co The Precision Toothbrush Case Help

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Colgate Palmolive Co The Precision Toothbrush Case Study Solution and Analysis


Intro

Colgate Palmolive Co The Precision Toothbrush Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.

Important Concerns

Although, Colgate Palmolive Co The Precision Toothbrush Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;

• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
Executive Summary
The improvement of the macro markets have raised a number of 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 business could be made use of 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


Colgate Palmolive Co The Precision Toothbrush Case Study Help has specific strengths that can be utilized to reduce the hazards, overcome the weak point and get the chances. Strengths of CMP are offered as follows;

• The long term experience of Colgate Palmolive Co The Precision Toothbrush Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong financial position permits the business to think about a number of advancement chances with no fear of raising fund externally.

Weak points

Together with the strengths, the business has particular weak points which could increase restrictions for the business in implementing its development program. The weaknesses of Colgate Palmolive Co The Precision Toothbrush Case Study Solution are given as follows;

• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is declining because 2008, affecting Colgate Palmolive Co The Precision Toothbrush Case Study Analysis also, but the growth might be restored by availing specific 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 client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.

Threats

The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned certain threats to Colgate Palmolive Co The Precision Toothbrush Case Study Analysis consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Colgate Palmolive Co The Precision Toothbrush Case Study Analysis due to the customer 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 gain a strong customer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market together with presence of high competitors increases the threat of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to absence of data, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly total revenues of Colgate Palmolive Co The Precision Toothbrush Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather effective in attracting a big number of clients at a prospective rate.

In addition to it, the second graph which shows the annual development in the Colgate Palmolive Co The Precision Toothbrush Case Study Analysis total assets, shows that the business is quite effective in adding worth to its properties through its revenues. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).

Another monetary analysis of the business utilizing the provided information might be the analysis concerning the distribution of total profits of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible development to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Colgate Palmolive Co The Precision Toothbrush Case Study Help company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in basic and the Colgate Palmolive Co The Precision Toothbrush Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth 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 overall business at CPM. However, China's economic conditions are quite beneficial 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 reading useful products etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Colgate Palmolive Co The Precision Toothbrush Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.

Technological.

Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces affecting Colgate Palmolive Co The Precision Toothbrush Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be harmful 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 Government to be entered in the publishing market.

Industry Analysis (Porter's 5 Forces Model).

Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.

Risk of New Entrants.

Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.

Risk of Substitution.

Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the danger of alternative for the industry.

Competitive Competition.

Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.

Bargaining Power of Provider.

The significant providers of the Colgate Palmolive Co The Precision Toothbrush Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of purchaser 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 buyers needs high quality files at competitive costs.

Competitors Analysis.

CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Colgate Palmolive Co The Precision Toothbrush Case Study Analysis include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a risk 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 existing market circumstance.

Posts and telecommunication Press (PTP).

It was likewise established in the exact same duration as Colgate Palmolive Co The Precision Toothbrush Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its items in the market.

Recommendations

With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the declining industry growth. For that reason, intro of digital publishing might show to be an instant option with low quantity of risk for the company. The business might 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 needs to first gathers the data associated with the consumer need, the potential markets, the federal government policies and the data related to the competitors presented in the market. After that, the business needs to choose one potential segment for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' items. After all the steps above the business must opt for the preliminary offering. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.

Conclusion

Although, the growth of the publishing industry is decreasing since 2008, showing a risk to the company's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The business might consider presenting 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.

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