Global Customer Management Programs How To Make Them Really Work Case Study Solution and Analysis
Introduction
Global Customer Management Programs How To Make Them Really Work Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and Global Customer Management Programs How To Make Them Really Work Case Study Analysis in particular. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Global Customer Management Programs How To Make Them Really Work Case Study Solution has specific strengths that can be utilized to reduce the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Global Customer Management Programs How To Make Them Really Work Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the company to consider numerous development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase constraints for the company in executing its advancement program. The weak points of Global Customer Management Programs How To Make Them Really Work Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining because 2008, impacting Global Customer Management Programs How To Make Them Really Work Case Study Solution as well, however the development might be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has posed certain risks to Global Customer Management Programs How To Make Them Really Work Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Global Customer Management Programs How To Make Them Really Work Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market along with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be determined. Nevertheless, the general monetary efficiency of the business might be evaluated by using the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Global Customer Management Programs How To Make Them Really Work Case Study Help is growing and the company is rather efficient in bring in a a great deal of clients at a potential rate.
In addition to it, the second graph which reveals the yearly development in the Global Customer Management Programs How To Make Them Really Work Case Study Analysis total possessions, reveals that the business is quite efficient in adding value to its possessions through its earnings. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis regarding the circulation of total incomes of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Global Customer Management Programs How To Make Them Really Work Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books affect the overall company at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Global Customer Management Programs How To Make Them Really Work Case Study Analysis includes the issues of environmental 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 ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the virtual libraries on certain websites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Global Customer Management Programs How To Make Them Really Work Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Global Customer Management Programs How To Make Them Really Work Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a major concentrate on instructional publications. CIP functions as a danger 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 marketplace share of Global Customer Management Programs How To Make Them Really Work Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Global Customer Management Programs How To Make Them Really Work Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an instant service to prevent the declining industry growth. For that reason, introduction of digital publishing might prove to be an instant option with low amount of threat for the company. The business could 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 company needs to first gathers the data related to the consumer demand, the prospective markets, the government regulations and the information related to the competitors provided in the market. After that, the company ought to decide one prospective sector for its initial offering. It should gather research that how it could separate its digital publishing from the existing rivals' items. The actions above the company should go for the preliminary offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a danger to the company's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
