Integrated Marketing Communication 2 Case Study Solution and Analysis
Integrated Marketing Communication 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Integrated Marketing Communication 2 Case Study Solution in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 situation? Do the long valuable 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?
Integrated Marketing Communication 2 Case Study Help has specific strengths that can be utilized to reduce the risks, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Integrated Marketing Communication 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position enables the business to think about several development opportunities without any worry of raising fund externally.
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in executing its development program. The weaknesses of Integrated Marketing Communication 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing market is declining because 2008, impacting Integrated Marketing Communication 2 Case Study Solution as well, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned specific dangers to Integrated Marketing Communication 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Integrated Marketing Communication 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence 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 strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the danger of losing the customer base.
The company has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. The general financial efficiency of the company might be examined by using the charts provided in the case Appendices. It could be examined from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Integrated Marketing Communication 2 Case Study Analysis is growing and the business is rather efficient in drawing in a large number of customers at a possible price.
In addition to it, the 2nd chart which shows the yearly growth in the Integrated Marketing Communication 2 Case Study Analysis overall possessions, shows that the company is rather effective in including value to its possessions through its profits. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data might be the analysis concerning the distribution of total incomes of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible development to achieve its future advancement objective.
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Integrated Marketing Communication 2 Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the total service at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading helpful products and so on. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Integrated Marketing Communication 2 Case Study Solution. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces impacting Integrated Marketing Communication 2 Case Study Help consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Integrated Marketing Communication 2 Case Study Solution consist of the providers of the paper for releasing documents. 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP runs in a highly competitive market with the existence of large number of rivals. 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 Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market development. Therefore, introduction of digital publishing might prove to be an instant option with low amount of threat for the business. However, the business could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially gathers the data related to the consumer need, the prospective markets, the government guidelines and the data related to the rivals provided 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.
Although, the growth of the publishing industry is declining considering that 2008, showing a threat to the business's long term presence, however the scenario can be controlled by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.