Marketing Strategy Plan Case Study Solution and Analysis
Marketing Strategy Plan Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing details and communication services. Significant company sectors of the company consist of; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports and so on. Marketing Strategy Plan Case Study Help has ended up being a specialized info supplier and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and Marketing Strategy Plan Case Study Analysis in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• 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 utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Marketing Strategy Plan Case Study Help has certain strengths that can be utilized to reduce the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Marketing Strategy Plan Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position enables the business to consider numerous advancement chances without any fear of raising fund externally.
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of Marketing Strategy Plan Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is declining considering that 2008, affecting Marketing Strategy Plan Case Study Help as well, but the development might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has presented particular hazards to Marketing Strategy Plan Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Marketing Strategy Plan Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the client base.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. The overall monetary efficiency of the company might be examined by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Marketing Strategy Plan Case Study Analysis is growing and the business is rather efficient in bring in a a great deal of customers at a potential rate.
Together with it, the second chart which shows the yearly growth in the Marketing Strategy Plan Case Study Help total possessions, shows that the business is quite effective in including worth to its possessions through its incomes. The development in possessions shows that the overall value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given information might be the analysis relating to the distribution of overall earnings of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a prospective growth to accomplish its future development goal.
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Marketing Strategy Plan Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Marketing Strategy Plan Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books impact the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading helpful products and so on. China has the highest population on the planet with a high population growth, showing the increasing variety 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 must focus on digital publishing to fulfill the altering consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Marketing Strategy Plan Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Marketing Strategy Plan Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
CMP operates in a highly competitive industry with the existence of large number of competitors. 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 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors 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 company require an immediate service to avoid the decreasing market growth. The business could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first collects the information related to the consumer need, the potential markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
The development of the publishing industry is decreasing since 2008, revealing a risk to the business's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.