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Matchstick Inc Word Of Mouth Marketing A Case Analysis

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Matchstick Inc Word Of Mouth Marketing A Case Study Solution and Analysis


Introduction

Matchstick Inc Word Of Mouth Marketing A Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.

Important Issues

CMP has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and Matchstick Inc Word Of Mouth Marketing A Case Study Solution in particular. These factors include;

• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
Executive Summary
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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Matchstick Inc Word Of Mouth Marketing A Case Study Solution has certain strengths that can be made use of to decrease the hazards, conquer the weakness and avail the chances. Strengths of CMP are given as follows;

• The long term experience of Matchstick Inc Word Of Mouth Marketing A Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the business to think about numerous advancement opportunities without any fear of raising fund externally.

Weaknesses

Along with the strengths, the business has certain weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Matchstick Inc Word Of Mouth Marketing A Case Study Solution are provided as follows;

• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is decreasing considering that 2008, impacting Matchstick Inc Word Of Mouth Marketing A Case Study Analysis too, but the development might be revived by availing specific opportunities provided in the market. The market chances for CMP include;

• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.

Threats

The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific hazards to Matchstick Inc Word Of Mouth Marketing A Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could cause declining market share of Matchstick Inc Word Of Mouth Marketing A Case Study Analysis due to the consumer shift towards digital libraries.
• The existence 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 customer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry together with presence of high competitors increases the danger of losing the client base.

Monetary Analysis.
Swot Analysis
Due to lack of information, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual overall profits of Matchstick Inc Word Of Mouth Marketing A Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is rather effective in attracting a large number of consumers at a possible cost.

Along with it, the second graph which reveals the yearly development in the Matchstick Inc Word Of Mouth Marketing A Case Study Analysis overall assets, reveals that the business is quite effective in including worth to its possessions through its profits. The development in possessions reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).

Another financial analysis of the company using the offered data could be the analysis regarding the circulation of total earnings of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a prospective growth to accomplish its future advancement objective.

PESTEL Analysis

PESTEL analysis might be performed to find out the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant impact 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 directed by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.

Affordable.

Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.

Social and Demographical.

The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.

Technological.

Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Matchstick Inc Word Of Mouth Marketing A Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's 5 Forces Model).

Porter's 5 Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.

Hazard of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.

Threat of Replacement.

Threat of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the digital libraries on particular websites. The changing consumer choices towards digital knowing increase the danger of substitution for the industry.

Competitive Rivalry.

Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant providers of the Matchstick Inc Word Of Mouth Marketing A Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.

Competitors Analysis.

CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Matchstick Inc Word Of Mouth Marketing A Case Study Help include;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts 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 market share of CMP quickly in the current market situation.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was likewise founded in the same duration 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 industry with an annual overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of potential 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 present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.

Suggestions

As the choices are moving towards digital publishing and the company require an immediate solution to prevent the declining market growth. The business might also think about the growth program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer need, the prospective markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

The growth of the publishing industry is decreasing because 2008, revealing a risk to the company's long term existence, however the scenario can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.

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