Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution and Analysis
Intro
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing info and interaction services. Major business segments of the company consist of; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports etc. Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution has become a specialized information company and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular challenges to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help has specific strengths that can be made use of to reduce the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position permits the business to consider a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in executing its development program. The weaknesses of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis also, but the development could be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific risks to Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help due to the customer shift towards digital 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 consumer base by using particular methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the yearly overall revenues of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual 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.
In addition to it, the second graph which reveals the annual growth in the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution total properties, shows that the company is quite effective in adding worth to its assets through its profits. The development in assets shows that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of overall profits of the company. Huge part of the profits 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 service segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading helpful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of consumers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. Nevertheless, 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 Marketing Anti Cavity Toothpaste 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a major focus on instructional publications. CIP functions as a threat 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 Marketing Anti Cavity Toothpaste 2 Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus 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 products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant option to avoid the decreasing industry growth. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first collects the information related to the consumer demand, the prospective markets, the government policies and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a hazard to the company's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
