Colgate Palmolive Staying Ahead In Oral Care Case Study Solution and Analysis
Colgate Palmolive Staying Ahead In Oral Care Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Colgate Palmolive Staying Ahead In Oral Care Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns 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 utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Colgate Palmolive Staying Ahead In Oral Care Case Study Solution has particular strengths that can be made use of to minimize the hazards, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Colgate Palmolive Staying Ahead In Oral Care Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position enables the company to think about numerous development opportunities without any worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase restraints for the business in executing its advancement program. The weak points of Colgate Palmolive Staying Ahead In Oral Care Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
The growth of the publishing industry is decreasing given that 2008, impacting Colgate Palmolive Staying Ahead In Oral Care Case Study Analysis as well, but the development might be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured particular risks to Colgate Palmolive Staying Ahead In Oral Care Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Colgate Palmolive Staying Ahead In Oral Care Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Due to absence of data, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall revenues of Colgate Palmolive Staying Ahead In Oral Care Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a big number of customers at a potential rate.
In addition to it, the second graph which reveals the yearly growth in the Colgate Palmolive Staying Ahead In Oral Care Case Study Solution overall possessions, shows that the business is quite effective in including value to its possessions through its incomes. The development in assets reveals that the overall value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the distribution of total profits of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a potential growth to attain its future advancement goal.
PESTEL analysis might be carried out to find out the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Colgate Palmolive Staying Ahead In Oral Care Case Study Solution includes the concerns of environmental 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 harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Colgate Palmolive Staying Ahead In Oral Care Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market 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 prices.
CMP operates in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Colgate Palmolive Staying Ahead In Oral Care Case Study Help consist of;.
• Chemical Industry 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 current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Colgate Palmolive Staying Ahead In Oral Care Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant option to prevent the decreasing industry development. Intro of digital publishing could show to be an instant option with low quantity of threat for the company. The company could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer demand, the prospective markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining since 2008, revealing a risk to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.