Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Solution and Analysis
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Analysis has particular strengths that can be utilized to decrease the risks, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Analysis in the publishing market 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 created by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the company to think about numerous development chances without any worry of raising fund externally.
Together with the strengths, the company has specific weak points which might increase restraints for the company in implementing its development program. The weak points of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is declining considering that 2008, impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Help too, however the development might be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific threats to Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the danger of losing the client base.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly total incomes of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite efficient in bring in a large number of consumers at a possible price.
Together with it, the second chart which shows the yearly growth in the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Solution overall assets, reveals that the business is rather effective in including value to its properties through its incomes. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis concerning the circulation of overall revenues of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a prospective development to accomplish its future development goal.
PESTEL analysis might be conducted to find out the various external forces impacting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces impacting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Solution organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the general company at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Solution. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Solution include the providers of the paper for publishing files. 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 Purchaser.
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 rates.
CMP operates in a highly competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Colgate Palmolive Company Marketing Anti Cavity Toothpaste 5 Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the company need an instant solution to avoid the declining market development. The company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should initially collects the data related to the customer demand, the possible markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing because 2008, showing a threat to the business's long term presence, but the situation can be controlled by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.