Colgate Palmolive Company 2 Case Study Solution and Analysis
Intro
Colgate Palmolive Company 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing info and interaction services. Major business sections of the business include; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its significant products include books, regulars, online media, exhibits, research study reports etc. Colgate Palmolive Company 2 Case Study Help has become a specialized details company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and Colgate Palmolive Company 2 Case Study Solution in particular. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change 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 important experience, technical resources and the abilities 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
Colgate Palmolive Company 2 Case Study Solution has certain strengths that can be used to minimize the dangers, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Colgate Palmolive Company 2 Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position enables the business to think about a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Colgate Palmolive Company 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Colgate Palmolive Company 2 Case Study Help as well, but the development could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has actually posed particular threats to Colgate Palmolive Company 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Colgate Palmolive Company 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly overall revenues of Colgate Palmolive Company 2 Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite efficient in bring in a big number of customers at a potential cost.
In addition to it, the second chart which shows the yearly growth in the Colgate Palmolive Company 2 Case Study Analysis overall assets, shows that the company is quite effective in adding worth to its assets through its incomes. The growth in properties shows that the overall worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis concerning the circulation of overall revenues of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be said that the total political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Colgate Palmolive Company 2 Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the overall business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Colgate Palmolive Company 2 Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together 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 Colgate Palmolive Company 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Colgate Palmolive Company 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in different market sectors, with a major concentrate on educational publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Colgate Palmolive Company 2 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate option to avoid the declining market development. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to first collects the data connected to the consumer demand, the possible markets, the government guidelines and the information related to the competitors provided in the market. After that, the business should decide one prospective sector for its initial offering. It must gather research study that how it might distinguish its digital publishing from the existing competitors' products. After all the steps above the business need to choose the initial offering. If the preliminary offering proves a success, the business should choose the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, revealing a threat to the company's long term presence, but the situation can be controlled by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
