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Decathlon China Using Social Media To Penetrate The Internet Market Case Solution

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Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution and Analysis


Introduction

Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing details and communication services. Significant business sectors of the company consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports and so on. Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution has ended up being a specialized details service provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Important Concerns

Although, Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in specific. These elements consist of;

• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
Executive Summary
The transformation of the macro markets have raised several questions 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 company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution has particular strengths that can be used to decrease the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are given 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 enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the business to consider numerous development chances with no worry of raising fund externally.

Weaknesses

Along with the strengths, the business has certain weak points which could increase restraints for the business in executing its development program. The weak points of Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help are provided as follows;

• Despite of being a science and technology 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 growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing industry is declining since 2008, impacting Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution as well, however the development could be revived by availing specific chances provided in the market. The market opportunities for CMP consist of;

• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.

Threats

The changing macro patterns in the market and increasing competitors in the publishing market has postured specific dangers to Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries could result in declining market share of Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis due to the consumer shift towards digital 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 acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the hazard of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to absence of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual total earnings of Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in attracting a large number of clients at a possible cost.

In addition to it, the second chart which shows the annual growth in the Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution total properties, reveals that the business is rather effective in adding worth to its possessions through its profits. The development in properties reveals that the total worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).

Another financial analysis of the business using the provided data might be the analysis regarding the distribution of total revenues of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a possible development to attain its future advancement goal.

PESTEL Analysis

PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.

Cost-effective.

Financial forces affecting the publishing sector in general and the Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the general organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.

Social and Demographical.

Social and demographical forces include the population development, the consumer's choices towards checking out useful products etc. China has the greatest population in the world with a high population development, showing the increasing number of customers of the Decathlon China Using Social Media To Penetrate The Internet Market Case Study Solution. However, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.

Technological.

Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs 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 initially by the Government to be entered in the publishing market.

Market Analysis (Porter's Five Forces Model).

Porter's 5 Forces Design might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.

Risk of New Entrants.

Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.

Danger of Substitution.

Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on particular websites. The altering consumer preferences towards digital knowing increase the threat of alternative for the market.

Competitive Rivalry.

Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The major providers of the Decathlon China Using Social Media To Penetrate The Internet Market Case Study Help consist of the suppliers of the paper for publishing files. 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.

Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.

Rivals Analysis.

CMP runs in a highly competitive industry with the presence 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 Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a major concentrate on educational publications. CIP acts as a risk 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 Decathlon China Using Social Media To Penetrate The Internet Market Case Study Analysis quickly in the existing market circumstance.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its items in the market.

Recommendations

As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the declining market development. The business might also consider the growth program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its product portfolio, the business should initially collects the data related to the consumer need, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.

Conclusion

The development of the publishing market is decreasing given that 2008, showing a risk to the business's long term presence, but the scenario can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.

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