Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Solution and Analysis
Introduction
Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Solution has particular strengths that can be utilized to minimize the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position allows the company to think about several development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Solution too, but the growth might be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned certain risks to Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the general monetary performance of the company could be evaluated by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Help is growing and the business is quite effective in attracting a large number of consumers at a possible rate.
In addition to it, the second graph which shows the annual growth in the Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Analysis overall properties, reveals that the company is rather effective in adding value to its assets through its incomes. The development in properties shows that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis regarding the distribution of overall earnings of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Analysis service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized 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.
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 Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the virtual libraries on certain websites. The altering customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall 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 existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Help consist of;.
• Chemical Industry 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 scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Franz Collection Inc The Road From Subcontracting To Brand Marketing Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand 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 advancement. As the choices are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market development. For that reason, introduction of digital publishing could show to be an instant option with low quantity of risk for the company. Nevertheless, the company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first gathers the information associated with the customer need, the prospective markets, the government regulations and the data connected to the competitors provided in the market. After that, the business needs to choose one potential sector for its preliminary offering. It ought to gather research that how it could distinguish its digital publishing from the existing rivals' products. The steps above the business should go for the preliminary offering. If the preliminary offering proves a success, the business must opt for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a threat to the company's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
