Integrated Marketing Communication 2 Case Study Solution and Analysis
Integrated Marketing Communication 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing info and interaction services. Major company sections of the business consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. Integrated Marketing Communication 2 Case Study Help has become a specialized information supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Integrated Marketing Communication 2 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Integrated Marketing Communication 2 Case Study Solution has specific strengths that can be used to lower the hazards, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Integrated Marketing Communication 2 Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the company to think about several development opportunities with no fear of raising fund externally.
Along with the strengths, the company has certain weak points which might increase restraints for the company in executing its advancement program. The weak points of Integrated Marketing Communication 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
The development of the publishing market is decreasing since 2008, impacting Integrated Marketing Communication 2 Case Study Analysis as well, but the growth might be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain dangers to Integrated Marketing Communication 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Integrated Marketing Communication 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly total incomes of Integrated Marketing Communication 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in drawing in a big number of consumers at a prospective cost.
Along with it, the second graph which shows the yearly development in the Integrated Marketing Communication 2 Case Study Solution overall properties, shows that the business is quite efficient in adding value to its possessions through its incomes. The growth in possessions reveals that the total worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis relating to the distribution of total incomes of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible development to accomplish its future development objective.
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Integrated Marketing Communication 2 Case Study Help company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic 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 combine effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken soon.
Ecological forces affecting Integrated Marketing Communication 2 Case Study Analysis includes the concerns of ecological neighborhoods 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 utilized while publishing must not be hazardous for the environment.
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 approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the files provided in the digital libraries on certain sites. The altering customer choices towards digital learning increase the risk of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Integrated Marketing Communication 2 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Integrated Marketing Communication 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first gathers the information related to the customer demand, the possible markets, the government policies and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining since 2008, showing a danger to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.