Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution and Analysis
Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 advancement unceasingly? How could the company sustain its long term competitive position in future?
Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution has certain strengths that can be utilized to reduce the risks, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong monetary position allows the company to consider numerous advancement chances with no worry of raising fund externally.
Along with the strengths, the company has specific weaknesses which could increase restraints for the business in executing its advancement program. The weak points of Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, 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 development. It should propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing market is decreasing because 2008, affecting Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help too, but the growth might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented certain risks to Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the consumer base.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual overall revenues of Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a big number of consumers at a possible rate.
Along with it, the second graph which shows the yearly development in the Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help overall properties, reveals that the business is rather effective in adding worth to its assets through its profits. The development in assets shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the circulation of total earnings of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a possible growth to accomplish its future development objective.
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative products and so on. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis. Nevertheless, the consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
CMP runs 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. Major rivals of Decathlon China Using Social Media To Penetrate The Internet Market 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 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 CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
• Competitors 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 business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an instant option to avoid the declining market development. Intro of digital publishing might show to be an immediate option with low quantity of risk for the company. The business might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should first gathers the data connected to the customer need, the prospective markets, the federal government policies and the data related to the competitors presented in the market. After that, the business must decide one prospective section for its preliminary offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the company need to choose the initial offering. If the initial offering proves a success, the company ought to choose the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, but the situation can be controlled by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.