Marketing Plan 2 Case Study Solution and Analysis
Introduction
Marketing Plan 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in basic and Marketing Plan 2 Case Study Help in specific. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Marketing Plan 2 Case Study Analysis has certain strengths that can be made use of to lower the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Marketing Plan 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong monetary position allows the company to consider several development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restrictions for the company in implementing its development program. The weak points of Marketing Plan 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing because 2008, affecting Marketing Plan 2 Case Study Analysis as well, however the development could be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has postured certain hazards to Marketing Plan 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Marketing Plan 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be computed. However, the total financial performance of the company could be analyzed by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Marketing Plan 2 Case Study Analysis is growing and the company is rather effective in attracting a large number of customers at a possible cost.
In addition to it, the 2nd chart which shows the annual growth in the Marketing Plan 2 Case Study Analysis total possessions, shows that the business is quite efficient in including value to its possessions through its revenues. The development in assets reveals that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis concerning the circulation of overall incomes of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sectors with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset 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 Celebration of China. Therefore, it might be stated that the total political forces impacting Marketing Plan 2 Case Study Help service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
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 altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Marketing Plan 2 Case Study Analysis includes 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 disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the files provided in the virtual libraries on particular websites. The changing customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Marketing Plan 2 Case Study Solution consist of the providers of the paper for publishing documents. 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 buyer 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 buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Marketing Plan 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in different market segments, with a significant focus on educational publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Marketing Plan 2 Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Marketing Plan 2 Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the declining market growth. For that reason, introduction of digital publishing might prove to be an immediate option with low amount of danger for the company. Nevertheless, the business could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to initially collects the data related to the consumer need, the prospective markets, the government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a hazard to the company's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
