Marketing Strategy Plan 2 Case Study Solution and Analysis
Marketing Strategy Plan 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing info and interaction services. Major service sections of the company include; books, regulars, consultancy and distribution. The company has a huge product portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. Marketing Strategy Plan 2 Case Study Solution has actually ended up being a specialized information supplier and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and Marketing Strategy Plan 2 Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of 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 company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Marketing Strategy Plan 2 Case Study Solution has particular strengths that can be used to decrease the threats, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Marketing Strategy 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 using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong monetary position enables the business to consider a number of advancement chances without any worry of raising fund externally.
Along with the strengths, the business has certain weak points which might increase restrictions for the business in executing its development program. The weak points of Marketing Strategy Plan 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is declining given that 2008, affecting Marketing Strategy Plan 2 Case Study Solution also, however the development might be restored by availing particular opportunities presented in the market. The market opportunities 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 could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
The changing macro trends in the market and increasing competitors in the publishing market has postured certain dangers to Marketing Strategy Plan 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Marketing Strategy Plan 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market together with existence of high competitors increases the hazard of losing the consumer base.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the annual total revenues of Marketing Strategy Plan 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is rather effective in drawing in a big number of customers at a possible cost.
In addition to it, the second graph which reveals the yearly growth in the Marketing Strategy Plan 2 Case Study Solution overall possessions, shows that the business is rather effective in including value to its possessions through its revenues. The growth in assets shows that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided information might be the analysis concerning the distribution of total profits of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a potential development to accomplish its future advancement objective.
PESTEL analysis might be carried out to learn the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Marketing Strategy Plan 2 Case Study Analysis company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Marketing Strategy Plan 2 Case Study Solution in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books impact the general organisation at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative products etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Marketing Strategy Plan 2 Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Marketing Strategy Plan 2 Case Study Solution includes the issues of ecological communities 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 utilized while publishing needs to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat 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 Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Marketing Strategy Plan 2 Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers requires high quality documents at competitive rates.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Marketing Strategy Plan 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP publishes comparable type of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sections, with a major concentrate on academic publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Marketing Strategy Plan 2 Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Marketing Strategy Plan 2 Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items in the market.
As the preferences are moving towards digital publishing and the company require an instant service to avoid the decreasing industry growth. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company needs to initially gathers the information related to the customer demand, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
The development of the publishing industry is declining given that 2008, revealing a risk to the business's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.