Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Solution and Analysis
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing details and communication services. Major organisation sections of the business include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports and so on. Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help has ended up being a specialized information service provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help in specific. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Solution has particular strengths that can be utilized to reduce the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong financial position permits the business to think about a number of development opportunities with no worry of raising fund externally.
Together with the strengths, the business has certain weak points which might increase restraints for the company in executing its development program. The weaknesses of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business 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 must propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing industry is declining considering that 2008, impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Analysis as well, but the development might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has actually postured certain hazards to Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the client base.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the annual total profits of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Solution during the duration 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 effective in bring in a large number of clients at a prospective cost.
In addition to it, the second chart which reveals the yearly growth in the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help overall possessions, shows that the business is quite effective in including worth to its assets through its incomes. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the circulation of overall incomes of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a potential growth to achieve its future development goal.
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall service at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Help consists of the issues of ecological communities 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 used while publishing should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the hazard of alternative for the industry.
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 rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence 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. Significant rivals of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 3 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in various market sectors, with a significant focus on instructional publications. CIP acts as a hazard 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 Marketing Anti Cavity Toothpaste 3 Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its products in the market.
As the preferences are shifting towards digital publishing and the business require an instant service to prevent the declining market growth. The business might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the customer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining given that 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.