Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution and Analysis
Introduction
Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
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, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing 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 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 capabilities of the business could be made use of 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
Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help has specific strengths that can be utilized to decrease the threats, conquer the weak point and avail the chances. Strengths of CMP are offered 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 market i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position enables the company to consider numerous development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help too, however the growth could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually postured particular hazards to Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total revenues of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is rather effective in drawing in a large number of customers at a potential rate.
Along with it, the second chart which shows the yearly development in the Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Help overall possessions, reveals that the company is rather effective in including worth to its assets through its profits. The growth in possessions shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the circulation of overall profits of the company. Huge part of the earnings 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 company sectors with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces affecting Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution includes the concerns of environmental neighborhoods 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.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in different market segments, 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 could wean the marketplace share of Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Entrepreneurial Sales Strategies Namaste Laboratories Pursues New Markets For Hair Care Products Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk 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 threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant option to prevent the decreasing market growth. The business 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 needs to first collects the data connected to the consumer demand, the possible markets, the government policies and the data related to the rivals presented in the market. After that, the company needs to decide one possible sector for its initial offering. It ought to collect research that how it might differentiate its digital publishing from the existing competitors' items. The steps above the business ought to go for the preliminary offering. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
