Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Solution and Analysis
Intro
Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing info and interaction services. Major organisation sectors of the company consist of; books, regulars, consultancy and circulation. The business has a large item portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Solution has actually ended up being a specialized information provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Analysis in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Help has certain strengths that can be used to reduce the risks, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the company to think about several development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restraints for the company in implementing its development program. The weak points of Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Analysis also, but the growth might be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has positioned specific threats to Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the annual total revenues of Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is rather efficient in bring in a large number of clients at a possible price.
Along with it, the second graph which shows the annual development in the Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Solution total properties, reveals that the company is quite efficient in adding value to its possessions through its profits. The growth in possessions shows that the overall value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis regarding the distribution of total earnings of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
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, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market. Along with it, the economic policies associated with the import of books impact the general business at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Event Sponsorship And Ambush Marketing Lessons From The Beijing Olympics Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the decreasing industry development. Introduction of digital publishing could prove to be an immediate service with low amount of risk for the business. Nevertheless, the company could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business ought to first gathers the information related to the consumer need, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a danger to the business's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
