Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution and Analysis
Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution has certain strengths that can be made use of to decrease the risks, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong monetary position allows the company to consider a number of development chances without any fear of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase constraints for the company in implementing its development program. The weak points of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is decreasing because 2008, impacting Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis as well, however the growth could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular dangers to Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the customer base.
Due to lack of information, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total revenues of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is quite efficient in bring in a big number of customers at a prospective price.
In addition to it, the second graph which shows the annual development in the Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help overall properties, shows that the business is quite efficient in adding value to its properties through its earnings. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the circulation of total profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a possible growth to achieve its future advancement goal.
PESTEL analysis might be carried out to find out the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the total business at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out useful products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Analysis includes the issues of ecological communities over the use 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 must not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the digital libraries on particular websites. The changing customer choices towards digital learning increase the threat of substitution for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
CMP operates in an extremely competitive market with the existence 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. Major rivals of Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Lowes Companies Inc Optimizing The Marketing Communication Mix Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competition 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 business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining industry development. For that reason, introduction of digital publishing could show to be an instant option with low quantity of risk for the company. The company might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially collects the information related to the consumer need, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, showing a risk to the business's long term presence, but the scenario can be controlled by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.