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 has ended up being a specialized information provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in basic and Marketing Management Marketing Plan Case Study Help in particular. These aspects consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Marketing Management Marketing Plan Case Study Solution has particular strengths that can be used to minimize the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Marketing Management Marketing Plan Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position permits the company to think about a number of development opportunities without any fear of raising fund externally.
In addition to the strengths, the business has particular weak points which could increase constraints for the company in implementing its development program. The weak points of Marketing Management Marketing Plan Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, 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 development. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing market is decreasing considering that 2008, impacting Marketing Management Marketing Plan Case Study Analysis as well, but the development might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has positioned specific dangers to Marketing Management Marketing Plan Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Marketing Management Marketing Plan Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the threat of losing the consumer base.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total revenues of Marketing Management Marketing Plan Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather effective in bring in a large number of consumers at a possible price.
Along with it, the second chart which shows the yearly development in the Marketing Management Marketing Plan Case Study Help total properties, shows that the business is quite efficient in adding value to its properties through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis relating to the distribution of overall profits 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 company could move towards other business sections with a possible growth to attain its future advancement objective.
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the overall political forces affecting Marketing Management Marketing Plan Case Study Analysis business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Marketing Management Marketing Plan Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the general organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out useful materials etc. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Marketing Management Marketing Plan Case Study Help. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Marketing Management Marketing Plan Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the documents provided in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the risk of replacement for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Marketing Management Marketing Plan Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Marketing Management Marketing Plan Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a major concentrate on instructional publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Marketing Management Marketing Plan Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its items in the market.
As the preferences are moving towards digital publishing and the company require an immediate option to avoid the decreasing market development. The business might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business needs to first gathers the data associated with the customer need, the possible markets, the federal government guidelines and the information associated with the rivals provided in the market. After that, the company needs to choose one prospective section for its preliminary offering. It ought to gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the steps above the company must go for the initial offering. The business must go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Although, the development of the publishing industry is decreasing given that 2008, showing a danger to the company's long term presence, however the situation can be controlled by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.