Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution and Analysis
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help has certain strengths that can be used to decrease the risks, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position permits the business to consider several advancement chances with no fear of raising fund externally.
Together with the strengths, the company has certain weak points which could increase restrictions for the company in executing its advancement program. The weak points of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard 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 certain growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the development of the publishing industry is declining given that 2008, impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help too, however the growth might be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually postured certain risks to Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry together with presence of high competitors increases the threat of losing the customer base.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total incomes of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite efficient in attracting a big number of clients at a potential cost.
In addition to it, the 2nd graph which reveals the annual growth in the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution overall assets, reveals that the business is quite efficient in adding worth to its properties through its earnings. The growth in possessions reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis relating to the distribution of overall profits of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a prospective development to accomplish its future development objective.
PESTEL analysis could be performed to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth 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 growth, the customer's preferences towards checking out helpful products and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Analysis. However, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 2 Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the virtual libraries on particular sites. The changing consumer choices towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers 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 biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The company 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 Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining market growth. The business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially collects the information associated with the customer need, the possible markets, the government policies and the information connected to the rivals provided in the market. After that, the company ought to choose one prospective section for its initial offering. It should collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the company must opt for the initial offering. If the preliminary offering proves a success, the company needs to opt for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing market is declining since 2008, showing a danger to the company's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.