Marketing Strategy Plan 2 Case Study Solution and Analysis
Introduction
Marketing Strategy Plan 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing details and interaction services. Significant service sectors of the company consist of; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports etc. Marketing Strategy Plan 2 Case Study Help has become a specialized info supplier and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and Marketing Strategy Plan 2 Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Marketing Strategy Plan 2 Case Study Analysis has certain strengths that can be made use of to minimize the threats, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Marketing Strategy Plan 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the business to think about numerous development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase restraints for the business in executing its advancement program. The weaknesses of Marketing Strategy Plan 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, affecting Marketing Strategy Plan 2 Case Study Solution too, however the growth might be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular threats to Marketing Strategy Plan 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Marketing Strategy Plan 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall profits of Marketing Strategy Plan 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is rather effective in attracting a big number of clients at a possible cost.
Along with it, the second chart which reveals the annual growth in the Marketing Strategy Plan 2 Case Study Help total properties, shows that the business is rather efficient in adding worth to its assets through its incomes. The growth in possessions shows that the overall value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis relating to the circulation of total earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth 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 traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Marketing Strategy Plan 2 Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the files presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Marketing Strategy Plan 2 Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Marketing Strategy Plan 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 very same period, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a major concentrate on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Marketing Strategy Plan 2 Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the declining market development. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially gathers the information connected to the customer need, the possible markets, the government guidelines and the information connected to the competitors presented in the market. After that, the company must decide one possible section for its preliminary offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the business ought to go for the initial offering. The business ought to go for the other markets if the initial offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, showing a risk to the business's long term presence, however the situation can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
