Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Solution and Analysis
Introduction
Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Analysis in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change 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 important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Solution has certain strengths that can be made use of to minimize the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the business to think about several advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the company in implementing its development program. The weak points of Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Solution also, but the development could be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has actually presented particular dangers to Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall profits of Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather effective in drawing in a big number of consumers at a potential rate.
Along with it, the second chart which shows the yearly growth in the Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Help overall properties, shows that the company is rather effective in adding worth to its properties through its earnings. The development in possessions shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis relating to the circulation of overall incomes of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Help business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies related to the import of books affect the total organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the documents provided in the virtual libraries on certain sites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider 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 market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sections, with a significant focus on educational publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Identification Of The Key Factors Of Long Term Customer Relationship That Provide A Competitive Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger 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 abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 organisation segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate service to prevent the decreasing industry development. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to initially gathers the information related to the customer demand, the prospective markets, the federal government guidelines and the data related to the competitors presented in the market. If the initial offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a threat to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
