Customer Intelligence Advantage Module 2 Assignment Case Study Solution and Analysis
Customer Intelligence Advantage Module 2 Assignment Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Customer Intelligence Advantage Module 2 Assignment Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation 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 situation? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Customer Intelligence Advantage Module 2 Assignment Case Study Solution has particular strengths that can be used to reduce the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Customer Intelligence Advantage Module 2 Assignment Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong monetary position allows the company to consider a number of advancement opportunities with no fear of raising fund externally.
Along with the strengths, the business has particular weak points which might increase constraints for the business in implementing its development program. The weak points of Customer Intelligence Advantage Module 2 Assignment Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is declining because 2008, affecting Customer Intelligence Advantage Module 2 Assignment Case Study Help as well, however the development could be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has positioned particular dangers to Customer Intelligence Advantage Module 2 Assignment Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Customer Intelligence Advantage Module 2 Assignment Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the hazard of losing the customer base.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly overall incomes of Customer Intelligence Advantage Module 2 Assignment Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is quite effective in drawing in a big number of customers at a possible rate.
Together with it, the 2nd graph which shows the annual growth in the Customer Intelligence Advantage Module 2 Assignment Case Study Help total possessions, reveals that the business is rather effective in including worth to its assets through its revenues. The growth in possessions shows that the overall value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the distribution of overall revenues of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential development to accomplish its future advancement goal.
PESTEL analysis could be conducted to find out the numerous external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Customer Intelligence Advantage Module 2 Assignment Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies related to the import of books affect the general organisation at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth 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 changing consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting Customer Intelligence Advantage Module 2 Assignment Case Study Solution consists of the concerns of environmental communities over the usage 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 needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The existence 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 replacement items for the published documents is the documents provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Customer Intelligence Advantage Module 2 Assignment Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Customer Intelligence Advantage Module 2 Assignment Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in numerous market sections, with a major concentrate on instructional 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 Customer Intelligence Advantage Module 2 Assignment Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product 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 company sections to the new one can lead the company to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the decreasing industry growth. The business could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the information connected to the customer demand, the possible markets, the federal government policies and the information connected to the competitors presented in the market. After that, the business ought to choose one possible sector for its preliminary offering. It must collect research that how it could separate its digital publishing from the existing rivals' items. The actions above the business ought to go for the initial offering. If the initial offering shows a success, the company ought to choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, showing a danger to the business's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.