Market Segmentation Essay Case Study Solution and Analysis
Market Segmentation Essay Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing info and communication services. Significant company sections of the business include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. Market Segmentation Essay Case Study Solution has ended up being a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in general and Market Segmentation Essay Case Study Help in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Market Segmentation Essay Case Study Solution has certain strengths that can be utilized to reduce the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Market Segmentation Essay Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position allows the business to consider numerous development opportunities without any fear of raising fund externally.
Together with the strengths, the business has certain weak points which might increase constraints for the company in executing its development program. The weaknesses of Market Segmentation Essay Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, 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 development. It ought to propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is declining since 2008, affecting Market Segmentation Essay Case Study Solution as well, but the development might be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competitors in the publishing market has posed particular hazards to Market Segmentation Essay Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Market Segmentation Essay Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry together with existence of high competition increases the risk of losing the customer base.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. The general monetary efficiency of the company could be evaluated by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Market Segmentation Essay Case Study Solution is growing and the business is quite efficient in bring in a large number of customers at a prospective price.
In addition to it, the 2nd chart which reveals the annual development in the Market Segmentation Essay Case Study Help overall possessions, shows that the business is quite effective in including worth to its properties through its incomes. The development in possessions shows that the total worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis relating to the distribution of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a prospective growth to attain its future advancement goal.
PESTEL analysis might be performed to discover the various external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact 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 stated that the overall political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Market Segmentation Essay Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the general business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Market Segmentation Essay Case Study Help includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 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 5 Forces Model might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market 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 major suppliers of the Market Segmentation Essay Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP operates in an extremely competitive market with the presence of a great deal 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 Market Segmentation Essay 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 could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Market Segmentation Essay Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the declining market growth. For that reason, intro of digital publishing might prove to be an instant service with low amount of risk for the company. The company might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to first gathers the information associated with the consumer need, the possible markets, the federal government policies and the data connected to the rivals presented in the market. After that, the company should decide one possible segment for its initial offering. It must collect research that how it could distinguish its digital publishing from the existing rivals' products. The steps above the company should go for the initial offering. If the preliminary offering proves a success, the business should go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing market is declining considering that 2008, showing a risk to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.