Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution and Analysis
Intro
Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing info and communication services. Major company sectors of the business include; books, regulars, consultancy and distribution. The company has a large product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports and so on. Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help has actually ended up being a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions 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 capabilities of the business could be made use of 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
Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis has certain strengths that can be made use of to minimize the threats, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong monetary position permits the business to think about a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, affecting Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis too, however the development could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain dangers to Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution due to the customer shift towards digital 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 rivals can get a strong customer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry along with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP might not be determined. The general monetary efficiency of the business could be evaluated by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution is growing and the business is quite efficient in bring in a large number of consumers at a prospective rate.
In addition to it, the second chart which shows the annual growth in the Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution overall possessions, shows that the business is quite efficient in including worth to its assets through its profits. The development in properties reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the provided data could be the analysis concerning the distribution of total revenues of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sectors with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies connected to the import of books affect the general organisation at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the documents presented in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis include;.
• Chemical Market 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market development. Therefore, intro of digital publishing might show to be an immediate solution with low amount of danger for the company. Nevertheless, the company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the consumer need, the prospective markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a danger to the business's long term existence, but the situation can be managed by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
