Marketing Research 2 Case Study Solution and Analysis
Marketing Research 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing information and communication services. Significant service segments of the business consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. Marketing Research 2 Case Study Analysis has actually ended up being a specialized information provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Marketing Research 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous questions 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 made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Marketing Research 2 Case Study Analysis has specific strengths that can be used to reduce the dangers, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Marketing Research 2 Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position enables the business to consider numerous advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has specific weak points which might increase restrictions for the company in executing its advancement program. The weak points of Marketing Research 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The development of the publishing industry is declining since 2008, impacting Marketing Research 2 Case Study Solution as well, but the development might be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competition in the publishing market has presented certain hazards to Marketing Research 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Marketing Research 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the hazard of losing the customer base.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. Nevertheless, the general financial performance of the company might be evaluated by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Marketing Research 2 Case Study Help is growing and the company is rather effective in drawing in a a great deal of consumers at a prospective rate.
Together with it, the 2nd graph which reveals the annual growth in the Marketing Research 2 Case Study Help total assets, shows that the business is rather efficient in including worth to its possessions through its incomes. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the distribution of overall incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a prospective growth to attain its future advancement goal.
PESTEL analysis might be conducted to discover 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 company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need 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 ought to focus on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces affecting Marketing Research 2 Case Study Solution includes the issues of ecological neighborhoods over the use 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 hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Marketing Research 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence 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. Significant competitors of Marketing Research 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sectors, with a major concentrate on academic publications. CIP serves as a hazard 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 market share of Marketing Research 2 Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its products in the market.
As the choices are moving towards digital publishing and the business require an immediate service to avoid the declining market development. The business might likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially collects the data related to the customer need, the potential markets, the government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
The growth of the publishing market is declining considering that 2008, showing a threat to the company's long term presence, however the circumstance can be controlled by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.