Marketing Firm Case Study Solution and Analysis
Introduction
Marketing Firm Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Marketing Firm Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
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 situation? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Marketing Firm Case Study Help has specific strengths that can be used to reduce the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Marketing Firm Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position enables the business to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Marketing Firm Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting Marketing Firm Case Study Help too, but the development could be revived by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific dangers to Marketing Firm Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Marketing Firm Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly overall profits of Marketing Firm Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is quite efficient in drawing in a big number of clients at a possible cost.
Together with it, the 2nd chart which shows the yearly development in the Marketing Firm Case Study Help overall properties, reveals that the business is quite effective in adding value to its properties through its revenues. The growth in possessions shows that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the given data could be the analysis regarding the circulation of total earnings of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Marketing Firm Case Study Analysis includes the issues of ecological neighborhoods 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 used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Marketing Firm Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider 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 purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly 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 Marketing Firm Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Marketing Firm Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus 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 products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant solution to avoid the decreasing market growth. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the information related to the consumer demand, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. After that, the company ought to choose one prospective sector for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing rivals' items. After all the steps above the business must choose the initial offering. If the preliminary offering shows a success, the business must choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, revealing a threat to the business's long term presence, but the situation can be managed by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
