Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution and Analysis
Intro
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised several questions 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 abilities of the business 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 4 Case Study Solution has specific strengths that can be made use of to minimize the risks, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position enables the business to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis as well, but the growth might be revived by availing specific chances provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has presented specific dangers to Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual total revenues of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a large number of customers at a potential cost.
Along with it, the second graph which reveals the yearly development in the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution total properties, shows that the business is quite efficient in including worth to its properties through its incomes. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the offered information might be the analysis relating to the distribution of total revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies associated with the import of books impact the overall business at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful products and so on. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors 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 company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an instant service to prevent the declining market growth. The company could likewise 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 must initially gathers the information connected to the consumer demand, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. After that, the company should decide one potential sector for its initial offering. It needs to gather research study that how it could differentiate its digital publishing from the existing rivals' items. The actions above the company ought to go for the preliminary offering. The company should go for the other markets if the preliminary offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a risk to the company's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
