Integrated Marketing Communication Case Study Solution and Analysis
Integrated Marketing Communication Case Study Help 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 service provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Integrated Marketing Communication Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring particular obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Integrated Marketing Communication Case Study Analysis has particular strengths that can be utilized to decrease the risks, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Integrated Marketing Communication Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position allows the business to think about several development opportunities without any worry of raising fund externally.
Along with the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of Integrated Marketing Communication Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
The development of the publishing industry is declining considering that 2008, impacting Integrated Marketing Communication Case Study Help as well, but the development might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has actually postured specific dangers to Integrated Marketing Communication Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Integrated Marketing Communication Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the threat of losing the consumer base.
Due to absence of data, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total incomes of Integrated Marketing Communication Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite effective in drawing in a big number of clients at a possible rate.
In addition to it, the 2nd chart which reveals the yearly growth in the Integrated Marketing Communication Case Study Solution total properties, reveals that the business is quite effective in including value to its assets through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the circulation of total incomes of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a possible growth to achieve its future advancement goal.
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Integrated Marketing Communication Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Integrated Marketing Communication Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 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 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
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 competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Integrated Marketing Communication Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 market saturation, the buyers requires high quality documents at competitive rates.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Integrated Marketing Communication Case Study Solution 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 terms of company scale. It is also one of the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• Competitors 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 company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market growth. Intro of digital publishing might prove to be an immediate solution with low quantity of risk for the business. The company might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the data related to the customer demand, the prospective markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing market is declining because 2008, showing a danger to the business's long term existence, but 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 implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.