Consumer Behavior Case Study Solution and Analysis
Introduction
Consumer Behavior Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and Consumer Behavior Case Study Solution in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be used 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
Consumer Behavior Case Study Analysis has certain strengths that can be utilized to lower the threats, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Consumer Behavior Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong monetary position enables the business to consider a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Consumer Behavior Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, affecting Consumer Behavior Case Study Analysis as well, however the growth could be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular risks to Consumer Behavior Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Consumer Behavior Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be calculated. The overall monetary performance of the business could be examined by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Consumer Behavior Case Study Solution is growing and the company is rather effective in bring in a large number of clients at a possible rate.
Along with it, the second chart which reveals the annual growth in the Consumer Behavior Case Study Solution overall possessions, shows that the company is rather efficient in adding worth to its possessions through its earnings. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis relating to the circulation of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Consumer Behavior Case Study Help in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the economic policies related to the import of books impact the general organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Consumer Behavior Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard 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 certain websites. The changing customer choices towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers 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 participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Consumer Behavior Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. However, 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 Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible 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 present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate option to avoid the decreasing market growth. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first gathers the information related to the consumer demand, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, showing a hazard to the company's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
