Colgate Palmolive Company Case Study Solution and Analysis
Introduction
Colgate Palmolive Company Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering details, processing information and interaction services. Major service sections of the business include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items include books, regulars, online media, exhibits, research study reports and so on. Colgate Palmolive Company Case Study Analysis has actually become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Colgate Palmolive Company Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation 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 valuable experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Colgate Palmolive Company Case Study Analysis has particular strengths that can be made use of to minimize the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Colgate Palmolive Company Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the business to think about a number of development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Colgate Palmolive Company Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Colgate Palmolive Company Case Study Analysis as well, however the growth might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has presented specific dangers to Colgate Palmolive Company Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Colgate Palmolive Company Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly overall incomes of Colgate Palmolive Company Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the business is quite effective in attracting a big number of consumers at a prospective price.
In addition to it, the second graph which shows the yearly development in the Colgate Palmolive Company Case Study Analysis overall possessions, reveals that the business is quite efficient in including value to its properties through its incomes. The development in possessions shows that the overall worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis regarding the distribution of overall profits of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Colgate Palmolive Company Case Study Solution organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Colgate Palmolive Company Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the total organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out helpful materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Colgate Palmolive Company Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. 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.
Ecological forces impacting Colgate Palmolive Company Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal 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 Design).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Colgate Palmolive Company Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total 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 market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Colgate Palmolive Company Case Study Help include;.
• Chemical Market 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 might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Colgate Palmolive Company Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate service to prevent the declining industry development. Introduction of digital publishing could show to be an immediate service with low amount of danger for the company. However, the company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should first gathers the information related to the consumer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, but the situation can be controlled by thinking about an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
