Hyundaicards Marketing Strategy Case Study Solution and Analysis
Intro
Hyundaicards Marketing Strategy Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Hyundaicards Marketing Strategy Case Study Analysis in particular. These aspects consist of;
• 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 innovation.
The transformation of the macro markets have raised several 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 abilities of the company could be used 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
Hyundaicards Marketing Strategy Case Study Help has specific strengths that can be made use of to decrease the risks, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Hyundaicards Marketing Strategy Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the company to think about a number of development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase constraints for the company in executing its development program. The weak points of Hyundaicards Marketing Strategy Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting Hyundaicards Marketing Strategy Case Study Analysis too, but the development could be restored by availing specific chances presented 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 customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented specific risks to Hyundaicards Marketing Strategy Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Hyundaicards Marketing Strategy Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market together with presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly overall incomes of Hyundaicards Marketing Strategy Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is quite efficient in drawing in a large number of consumers at a prospective rate.
Along with it, the 2nd graph which reveals the annual development in the Hyundaicards Marketing Strategy Case Study Help total properties, shows that the business is quite effective in adding worth to its properties through its revenues. The growth in assets reveals that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given information could 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 published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces impacting Hyundaicards Marketing Strategy Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Hyundaicards Marketing Strategy Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to 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 Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Hyundaicards Marketing Strategy Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Hyundaicards Marketing Strategy Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks third and second in different market sections, with a significant concentrate on instructional publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Hyundaicards Marketing Strategy Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular players in the publishing industry with an annual overall revenues 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 opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate service to prevent the decreasing industry development. The company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should initially collects the data related to the customer need, the prospective markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term presence, however the circumstance can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
