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Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Help

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Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution and Analysis


Introduction

Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Critical Problems

Although, Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in particular. These aspects consist of;

• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
The transformation 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 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?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help has certain strengths that can be used to lower the risks, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;

• The long term experience of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the business to consider numerous development chances without any fear of raising fund externally.

Weak points

In addition to the strengths, the business has specific weaknesses which might increase restraints for the business in executing 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 innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing industry is decreasing since 2008, affecting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis as well, however the development could be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;

• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.

Threats

The changing macro trends in the market and increasing competitors in the publishing industry has posed certain hazards to Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market together with presence of high competitors increases the danger of losing the client base.

Monetary Analysis.
Swot Analysis
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be calculated. However, the total monetary performance of the business could be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis is growing and the company is rather efficient in drawing in a large number of clients at a potential cost.

Together with it, the second chart which shows the yearly development in the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis total properties, reveals that the company is rather effective in including value to its possessions through its profits. The development in assets shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).

Another monetary analysis of the business using the offered information might be the analysis regarding the distribution of total revenues of the business. Huge part of the incomes 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 organisation segments with a possible development to attain its future advancement objective.

PESTEL Analysis

PESTEL analysis might be performed to find out the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market.

Social and Demographical.

Social and demographical forces include the population growth, the consumer's choices towards checking out helpful materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution. However, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.

Technological.

Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution includes the concerns of ecological communities 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 should not be damaging for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.

Market Analysis (Porter's Five Forces Model).

Porter's 5 Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.

Risk of New Entrants.

Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.

Risk of Alternative.

Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files provided in the virtual libraries on certain websites. The changing customer choices towards digital knowing increase the threat of replacement for the market.

Competitive Competition.

Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace 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 publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.

Rivals Analysis.

CMP operates in a highly competitive market with the presence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 4 Case Study Solution include;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a danger 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 easily in the present market circumstance.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its items in the market.

Suggestions

As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the declining industry growth. The company might likewise think about the growth program after the success of its digital publishing program.

Execution

In order to present digital publishing in its item portfolio, the company should first collects the information related to the customer demand, the possible markets, the government guidelines and the data related to the competitors presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.

Conclusion

The development of the publishing market is declining considering that 2008, revealing a risk to the company's long term existence, however the scenario can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.

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