How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Solution and Analysis
Intro
How Focused Identities Can Help Brands Navigate Changing Media Landscape 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 details supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 valuable experience, technical resources and the capabilities of the business could be utilized 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
How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Solution has specific strengths that can be used to reduce the hazards, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position enables the business to think about several advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its development program. The weak points of How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Analysis also, but the development might be restored by availing specific opportunities provided in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has presented particular risks to How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The total financial performance of the company could be examined by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Help is growing and the business is quite efficient in drawing in a a great deal of clients at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Help overall possessions, shows that the company is quite efficient in adding value to its properties through its incomes. The growth in properties reveals that the total value of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis relating to the circulation of total profits of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance 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 significant effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces affecting How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Help company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books impact the overall organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number 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 likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of How Focused Identities Can Help Brands Navigate Changing Media Landscape Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry 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 require an instant service to prevent the decreasing market development. Introduction of digital publishing could show to be an immediate option with low quantity of threat for the business. However, the company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information related to the customer demand, the potential markets, the government regulations and the information related to the rivals provided 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 development of the publishing market is declining since 2008, showing a threat to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
