Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution and Analysis
Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering information, processing details and communication services. Major business sectors of the business consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports and so on. Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution has 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, Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis has particular strengths that can be utilized to lower the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong financial position enables the business to think about numerous advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which could increase constraints for the company in implementing its advancement program. The weaknesses of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining given that 2008, affecting Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help as well, however the growth might be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular risks to Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals 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 using specific methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market along with presence of high competition increases the threat of losing the client base.
The company has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be determined. However, the overall financial performance of the company might be analyzed by using the graphs given up the case Appendices. It might be examined from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis is growing and the business is rather effective in bring in a a great deal of consumers at a potential rate.
In addition to it, the 2nd graph which shows the annual growth in the Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help overall assets, reveals that the company is quite efficient in including worth to its assets through its earnings. The growth in properties shows that the total value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the distribution of total incomes of the company. Huge part of the incomes 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 company sectors with a prospective development to achieve its future advancement goal.
PESTEL analysis could be carried out to find out the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful products etc. China has the highest population worldwide with a high population development, revealing the increasing number of customers of the Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help includes the issues of ecological neighborhoods over the use 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 should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the decreasing market growth. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first collects the information related to the customer need, the possible markets, the government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, revealing a danger to the company's long term presence, however the situation can be managed by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.