Consumer Behavior Case Study Solution and Analysis
Consumer Behavior Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing market in general and Consumer Behavior Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Consumer Behavior Case Study Analysis has particular strengths that can be used to lower the risks, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Consumer Behavior Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong monetary position permits the business to consider a number of advancement opportunities with no worry of raising fund externally.
In addition to the strengths, the business has specific weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Consumer Behavior Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
The development of the publishing market is decreasing considering that 2008, impacting Consumer Behavior Case Study Analysis as well, but the development might be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented particular threats to Consumer Behavior Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Consumer Behavior Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the danger of losing the customer base.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be determined. However, the overall monetary performance of the business could be analyzed by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Consumer Behavior Case Study Analysis is growing and the business is quite effective in drawing in a large number of customers at a potential rate.
In addition to it, the second graph which reveals the yearly development in the Consumer Behavior Case Study Help total assets, shows that the business is rather efficient in including worth to its possessions through its revenues. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis concerning the distribution of overall earnings of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a possible development to attain its future development goal.
PESTEL analysis could be conducted to learn the various 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 business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion 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 also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Consumer Behavior Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies associated with the import of books affect the general company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology along with the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Consumer Behavior Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the danger of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Consumer Behavior Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Consumer Behavior Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in various market segments, with a significant concentrate on educational publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Consumer Behavior Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the decreasing market development. The business could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must initially collects the data related to the consumer demand, the prospective markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, showing a hazard to the business's long term presence, but the situation can be controlled by thinking about an advancement plan in the future. The business could think about 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 new markets.