Kiai Marketing Group Case Study Solution and Analysis
Intro
Kiai Marketing Group 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 supplier and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Kiai Marketing Group Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kiai Marketing Group Case Study Help has certain strengths that can be made use of to minimize the hazards, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Kiai Marketing Group Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position enables the company to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weak points of Kiai Marketing Group Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Kiai Marketing Group Case Study Help as well, however the growth might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned particular hazards to Kiai Marketing Group Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Kiai Marketing Group Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. However, the total monetary efficiency of the business might be evaluated by using the charts given up the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Kiai Marketing Group Case Study Help is growing and the company is quite efficient in bring in a large number of clients at a potential rate.
Along with it, the 2nd chart which reveals the annual growth in the Kiai Marketing Group Case Study Solution total properties, reveals that the business is quite effective in adding value to its properties through its earnings. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the given data might be the analysis relating to the distribution of total incomes of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Kiai Marketing Group Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Kiai Marketing Group Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on specific sites. The changing customer choices towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Kiai Marketing Group Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the presence 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. Major competitors of Kiai Marketing Group Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP releases similar type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a significant concentrate on instructional publications. CIP serves as a risk 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 marketplace share of Kiai Marketing Group Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Kiai Marketing Group Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
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 suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an immediate service to avoid the decreasing market development. Introduction of digital publishing could prove to be an immediate option with low amount of danger for the company. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially collects the information related to the customer need, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a threat to the business's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
