Marriott Corporation 4 Case Study Solution and Analysis
Introduction
Marriott Corporation 4 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details company and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and Marriott Corporation 4 Case Study Help in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions 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 capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Marriott Corporation 4 Case Study Solution has particular strengths that can be utilized to lower the threats, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Marriott Corporation 4 Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position permits the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Marriott Corporation 4 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company 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 growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Marriott Corporation 4 Case Study Analysis also, however the growth could be revived by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned certain hazards to Marriott Corporation 4 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Marriott Corporation 4 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals 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 using particular techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. The overall financial performance of the business might be examined by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Marriott Corporation 4 Case Study Help is growing and the business is rather efficient in drawing in a large number of consumers at a prospective cost.
In addition to it, the 2nd chart which reveals the annual growth in the Marriott Corporation 4 Case Study Analysis total assets, shows that the business is quite effective in including value to its assets through its revenues. The development in properties shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the circulation of total earnings of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Marriott Corporation 4 Case Study Analysis company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Marriott Corporation 4 Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Marriott Corporation 4 Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Marriott Corporation 4 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market segments, with a major concentrate on academic publications. CIP serves as a risk 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 marketplace share of Marriott Corporation 4 Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Marriott Corporation 4 Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the declining market development. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially collects the data related to the consumer need, the potential markets, the government policies and the data associated with the competitors provided in the market. After that, the company needs to decide one prospective segment for its initial offering. It ought to collect research study that how it could separate its digital publishing from the existing rivals' items. The actions above the business should go for the initial offering. If the initial offering proves a success, the company should choose the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a hazard to the company's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
