Kiai Marketing Group Case Study Solution and Analysis
Introduction
Kiai Marketing Group Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and Kiai Marketing Group Case Study Solution in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of questions 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 company 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
Kiai Marketing Group Case Study Help has certain strengths that can be utilized to reduce the risks, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Kiai Marketing Group Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position enables the business to think about several development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase constraints for the company in executing its advancement 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 standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Kiai Marketing Group Case Study Help as well, but the growth could be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has presented specific threats to Kiai Marketing Group Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Kiai Marketing Group Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be computed. Nevertheless, the general monetary efficiency of the business might be analyzed by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Kiai Marketing Group Case Study Help is growing and the company is rather effective in drawing in a a great deal of clients at a possible price.
In addition to it, the 2nd graph which reveals the yearly development in the Kiai Marketing Group Case Study Help overall properties, shows that the business is rather effective in including worth to its assets through its incomes. The development in assets shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the distribution of total earnings of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Kiai Marketing Group Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the overall company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out informative products etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Kiai Marketing Group Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Kiai Marketing Group Case Study Analysis consists of the concerns of ecological communities 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 needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the virtual libraries on certain sites. The altering consumer choices towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Kiai Marketing Group Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Kiai Marketing Group Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Kiai Marketing Group Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective 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 present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the declining market growth. For that reason, intro of digital publishing could show to be an immediate option with low quantity of risk for the company. Nevertheless, the company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first gathers the information related to the customer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a danger to the business's long term presence, however the situation can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
