Colgate Palmolive Company 2 Case Study Solution and Analysis
Colgate Palmolive Company 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing information and interaction services. Major company segments of the business include; books, regulars, consultancy and circulation. The business has a large item portfolio and its major items include books, regulars, online media, exhibitions, research study reports and so on. Colgate Palmolive Company 2 Case Study Help has actually ended up being a specialized info supplier and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and Colgate Palmolive Company 2 Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Colgate Palmolive Company 2 Case Study Analysis has particular strengths that can be used to decrease the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Colgate Palmolive Company 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the company to consider several advancement opportunities with no fear of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase constraints for the business in executing its development program. The weaknesses of Colgate Palmolive Company 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to avoid its reliance over the Chinese markets to attain long term growth.
The development of the publishing industry is declining since 2008, impacting Colgate Palmolive Company 2 Case Study Help as well, but the growth could be revived by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce 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 expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed particular dangers to Colgate Palmolive Company 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Colgate Palmolive Company 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the hazard of losing the customer base.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual total incomes of Colgate Palmolive Company 2 Case Study Analysis throughout the duration 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 efficient in bring in a large number of customers at a prospective price.
Together with it, the second graph which shows the yearly growth in the Colgate Palmolive Company 2 Case Study Solution total properties, shows that the company is quite efficient in including value to its properties through its earnings. The development in possessions shows that the total value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis relating to the circulation of overall earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a possible growth to attain its future development objective.
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative materials etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of consumers of the Colgate Palmolive Company 2 Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Ecological forces affecting Colgate Palmolive Company 2 Case Study Solution 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 used while publishing should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. 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 Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the risk of substitution for the industry.
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 competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Colgate Palmolive Company 2 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 purchasers requires high quality files at competitive rates.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Colgate Palmolive Company 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in different market segments, with a major focus on educational publications. CIP functions as a risk 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 marketplace share of Colgate Palmolive Company 2 Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Colgate Palmolive Company 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an immediate option to prevent the declining industry development. Therefore, introduction of digital publishing could prove to be an instant option with low quantity of danger for the business. The business might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the consumer need, the possible markets, the federal government regulations and the information connected to the rivals presented in the market. After that, the company needs to decide one potential segment for its initial offering. It should collect research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the business should choose the preliminary offering. If the initial offering shows a success, the business needs to opt for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing market is declining since 2008, showing a threat to the company's long term existence, but the situation can be controlled by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.