Marketing Research 2 Case Study Solution and Analysis
Introduction
Marketing Research 2 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; gathering info, processing details and communication services. Significant business sections of the company include; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Marketing Research 2 Case Study Solution has become a specialized details company and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Marketing Research 2 Case Study Analysis in particular. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Marketing Research 2 Case Study Analysis has certain strengths that can be used to reduce the risks, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Marketing Research 2 Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the company to consider several development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Marketing Research 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Marketing Research 2 Case Study Solution as well, but the growth might be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has postured particular threats to Marketing Research 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Marketing Research 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry along with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be determined. The total monetary efficiency of the business could be analyzed by utilizing the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Marketing Research 2 Case Study Analysis is growing and the company is quite efficient in drawing in a a great deal of clients at a potential cost.
Together with it, the second graph which reveals the yearly growth in the Marketing Research 2 Case Study Solution overall assets, reveals that the business is rather effective in including worth to its assets through its profits. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the offered information could be the analysis regarding the circulation of overall profits of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces impacting Marketing Research 2 Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Marketing Research 2 Case Study Analysis 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 impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the total organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer 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 affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Marketing Research 2 Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on certain sites. The changing customer choices towards digital learning increase the risk of replacement 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 Market 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 competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Marketing Research 2 Case Study Solution include the suppliers of the paper for releasing documents. 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 Purchaser.
Negotiating power of buyer 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 costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Marketing Research 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in different market segments, with a major concentrate on instructional publications. CIP acts 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 might wean the market share of Marketing Research 2 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Marketing Research 2 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the data related to the consumer demand, the possible markets, the government regulations and the data related to the competitors 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
The growth of the publishing industry is declining because 2008, showing a danger to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
