International Marketing Plan 2 Case Study Solution and Analysis
Introduction
International Marketing Plan 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, International Marketing Plan 2 Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in specific. These elements include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement 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 scenario? Do the long important experience, technical resources and the abilities 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
International Marketing Plan 2 Case Study Solution has specific strengths that can be made use of to reduce the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of International Marketing Plan 2 Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position allows the business to consider numerous advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which might increase restrictions for the company in executing its development program. The weak points of International Marketing Plan 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting International Marketing Plan 2 Case Study Help as well, however the development might be restored by availing certain chances presented in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has positioned certain dangers to International Marketing Plan 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of International Marketing Plan 2 Case Study Solution due to the customer 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 acquire a strong consumer base by using certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market along with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP could not be determined. The overall financial efficiency of the business might be examined by utilizing the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of International Marketing Plan 2 Case Study Help is growing and the business is rather efficient in drawing in a a great deal of clients at a possible rate.
Together with it, the 2nd chart which shows the annual development in the International Marketing Plan 2 Case Study Analysis overall properties, shows that the company is rather efficient in adding worth to its possessions through its incomes. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the distribution of total earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting International Marketing Plan 2 Case Study Help company 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 basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out helpful products etc. China has the greatest population worldwide with a high population development, revealing the increasing variety of customers of the International Marketing Plan 2 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting International Marketing Plan 2 Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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 competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the International Marketing Plan 2 Case Study Help consist of the suppliers 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 Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of International Marketing Plan 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market sectors, with a major focus on academic publications. CIP serves as a danger 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 International Marketing Plan 2 Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus 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.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an instant option to prevent the decreasing industry development. Introduction of digital publishing might prove to be an immediate option with low quantity of risk for the business. However, the business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should initially collects the data associated with the customer demand, the possible markets, the federal government policies and the information associated with the competitors presented in the market. After that, the business should decide one possible segment for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing rivals' products. After all the actions above the business ought to opt for the initial offering. The company must go for the other markets if the initial offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
