Marketing Management Marketing Plan Case Study Solution and Analysis
Marketing Management Marketing Plan Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing information and interaction services. Significant service sections of the business consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports and so on. Marketing Management Marketing Plan Case Study Solution has ended up being a specialized information provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Marketing Management Marketing Plan Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several 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 abilities 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?
Marketing Management Marketing Plan Case Study Analysis has certain strengths that can be used to lower the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Marketing Management Marketing Plan Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong monetary position enables the business to consider several advancement opportunities without any fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Marketing Management Marketing Plan Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
The development of the publishing industry is decreasing given that 2008, affecting Marketing Management Marketing Plan Case Study Solution as well, but the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has presented certain dangers to Marketing Management Marketing Plan Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Marketing Management Marketing Plan Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the threat of losing the customer base.
Due to lack of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual overall revenues of Marketing Management Marketing Plan Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in attracting a large number of consumers at a potential rate.
Together with it, the 2nd graph which reveals the yearly development in the Marketing Management Marketing Plan Case Study Help total possessions, reveals that the company is rather efficient in including value to its assets through its profits. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the circulation of total earnings of the business. 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 company could move towards other organisation sectors with a possible development to accomplish its future development goal.
PESTEL analysis could be performed to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Marketing Management Marketing Plan Case Study Help business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative materials and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Marketing Management Marketing Plan Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Marketing Management Marketing Plan Case Study Help includes the concerns of ecological communities 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 ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Marketing Management Marketing Plan Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the purchasers needs high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Marketing Management Marketing Plan Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Marketing Management Marketing Plan Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining market growth. The company could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially gathers the data related to the customer demand, the possible markets, the government policies and the information related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing because 2008, showing a hazard to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.