Is It Time To Rethink Your Pricing Strategy Case Study Solution and Analysis
Introduction
Is It Time To Rethink Your Pricing Strategy Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing details and communication services. Significant organisation segments of the company include; books, regulars, consultancy and distribution. The company has a large item portfolio and its major products include books, regulars, online media, exhibitions, research reports and so on. Is It Time To Rethink Your Pricing Strategy Case Study Analysis has actually become a specialized information provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in basic and Is It Time To Rethink Your Pricing Strategy Case Study Analysis in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Is It Time To Rethink Your Pricing Strategy Case Study Help has particular strengths that can be made use of to reduce the risks, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Is It Time To Rethink Your Pricing Strategy Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the company to think about several development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the company in executing its development program. The weaknesses of Is It Time To Rethink Your Pricing Strategy Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Is It Time To Rethink Your Pricing Strategy Case Study Solution too, however the growth could be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented specific threats to Is It Time To Rethink Your Pricing Strategy Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Is It Time To Rethink Your Pricing Strategy Case Study Help due to the customer 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 get a strong customer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry along with existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the annual total incomes of Is It Time To Rethink Your Pricing Strategy Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is rather effective in bring in a large number of customers at a potential cost.
In addition to it, the 2nd chart which shows the annual growth in the Is It Time To Rethink Your Pricing Strategy Case Study Help total assets, shows that the company is quite effective in including value to its assets through its profits. The development in assets reveals that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis concerning the circulation of overall earnings of the business. Huge part of the revenues 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 segments with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Is It Time To Rethink Your Pricing Strategy Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market. Along with it, the economic policies related to the import of books affect the overall business at CPM. China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful products and so on. China has the greatest population worldwide with a high population development, revealing the increasing variety of customers of the Is It Time To Rethink Your Pricing Strategy Case Study Analysis. Nevertheless, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Is It Time To Rethink Your Pricing Strategy Case Study Solution includes the concerns of environmental neighborhoods 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding 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 entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger 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 market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the digital libraries on specific websites. The altering consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Is It Time To Rethink Your Pricing Strategy Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Is It Time To Rethink Your Pricing Strategy Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Is It Time To Rethink Your Pricing Strategy Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
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 brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining industry development. For that reason, introduction of digital publishing could show to be an immediate solution with low quantity of threat for the company. Nevertheless, the company could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the data connected to the customer demand, the possible markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the business should choose one potential section for its initial offering. It ought to gather research study that how it might separate its digital publishing from the existing rivals' products. After all the actions above the business must go for the initial offering. If the preliminary offering proves a success, the business should opt for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a threat to the company's long term presence, however the situation 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 instant basis and to avoid the risk of failure for entrance in the new markets.
