Hope Bloom Marketing Strategy Case Study Solution and Analysis
Introduction
Hope Bloom Marketing Strategy Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Hope Bloom Marketing Strategy Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of 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
Hope Bloom Marketing Strategy Case Study Analysis has particular strengths that can be made use of to minimize the hazards, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Hope Bloom Marketing Strategy Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position permits the business to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restraints for the business in implementing its development program. The weak points of Hope Bloom Marketing Strategy Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Hope Bloom Marketing Strategy Case Study Analysis as well, however the growth could be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has posed certain dangers to Hope Bloom Marketing Strategy Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Hope Bloom Marketing Strategy Case Study Solution due to the consumer shift towards virtual 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 rivals can gain a strong customer base by utilizing particular techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry along with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total incomes of Hope Bloom Marketing Strategy Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in attracting a big number of consumers at a potential cost.
In addition to it, the 2nd graph which shows the annual development in the Hope Bloom Marketing Strategy Case Study Solution overall properties, reveals that the company is quite efficient in including value to its assets through its revenues. The development in properties shows that the total worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis concerning the circulation of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different 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 provided 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, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be stated that the general political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out useful materials etc. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the Hope Bloom Marketing Strategy Case Study Solution. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Hope Bloom Marketing Strategy Case Study Help 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 utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the virtual libraries on specific websites. The altering customer choices towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Hope Bloom Marketing Strategy Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Hope Bloom Marketing Strategy Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks third and second in numerous market segments, with a major concentrate on instructional publications. CIP serves 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 Hope Bloom Marketing Strategy Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing 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 brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the decreasing industry growth. Introduction of digital publishing might prove to be an instant solution with low amount of risk for the company. Nevertheless, the company could likewise consider the expansion 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 collects the data connected to the consumer demand, the possible markets, the government guidelines and the information connected to the competitors provided in the market. After that, the business must choose one potential sector for its preliminary offering. It must collect research study that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company need to go for the initial offering. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a danger to the company's long term existence, but the situation can be controlled by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
