Marketing Strategy Plan Case Study Solution and Analysis
Introduction
Marketing Strategy Plan Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Marketing Strategy Plan Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns 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 used 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 Strategy Plan Case Study Analysis has particular strengths that can be used to reduce the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Marketing Strategy Plan Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position enables the company to think about several advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase restrictions for the business in implementing its development program. The weaknesses of Marketing Strategy Plan Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting Marketing Strategy Plan Case Study Analysis also, however the development could be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company could likewise present 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 minimize its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has positioned particular risks to Marketing Strategy Plan Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Marketing Strategy Plan Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be calculated. The general financial efficiency of the business could be examined by using the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Marketing Strategy Plan Case Study Analysis is growing and the business is rather efficient in drawing in a large number of customers at a possible rate.
Together with it, the second chart which reveals the yearly growth in the Marketing Strategy Plan Case Study Help overall possessions, reveals that the company is quite effective in including value to its properties through its earnings. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis relating to the distribution of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the general political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Marketing Strategy Plan Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall business at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative materials etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Marketing Strategy Plan Case Study Solution. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Marketing Strategy Plan Case Study Analysis includes the issues of ecological communities 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 ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Marketing Strategy Plan Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Marketing Strategy Plan Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market segments, with a significant focus on academic publications. CIP functions as a threat 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 marketplace share of Marketing Strategy Plan Case Study Help easily in the present market circumstance.
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 organisation scale. It is likewise among the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an instant option to avoid the decreasing market development. For that reason, introduction of digital publishing could show to be an immediate service with low quantity of danger for the business. Nevertheless, the company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first collects the information related to the consumer demand, the potential markets, the government guidelines and the data related to the competitors provided in the market. After that, the company should choose one potential section for its preliminary offering. It ought to collect research that how it might separate its digital publishing from the existing rivals' items. After all the steps above the business ought to go for the initial offering. The company must go for the other markets if the initial offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a threat to the company's long term existence, but the scenario can be managed by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
