New Marketing Strategy Case Study Solution and Analysis
Introduction
New Marketing Strategy Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and New Marketing Strategy Case Study Help in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 abilities of the business could be utilized 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
New Marketing Strategy Case Study Help has particular strengths that can be made use of to decrease the risks, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of New Marketing Strategy Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position enables the company to think about several advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of New Marketing Strategy Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting New Marketing Strategy Case Study Solution as well, but the growth could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has presented specific risks to New Marketing Strategy Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of New Marketing Strategy Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be calculated. The general monetary efficiency of the business might be analyzed by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of New Marketing Strategy Case Study Help is growing and the business is quite efficient in drawing in a a great deal of customers at a potential rate.
Together with it, the second graph which shows the annual development in the New Marketing Strategy Case Study Solution total possessions, shows that the company is quite efficient in adding value to its possessions through its earnings. The growth in possessions reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis relating to the distribution of overall profits of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting New Marketing Strategy Case Study Solution company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the New Marketing Strategy Case Study Solution in particular includesthe rates 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. In addition to it, the financial policies connected to the import of books affect the general business at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional 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 development in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting New Marketing Strategy Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the New Marketing Strategy Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of New Marketing Strategy Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing 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 sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the declining industry development. Intro of digital publishing might show to be an instant service with low quantity of risk for the company. However, the company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first collects the information related to the consumer need, the potential markets, the federal government policies and the data connected to the rivals provided in the market. After that, the company needs to choose one potential segment for its preliminary offering. It ought to collect research that how it might separate its digital publishing from the existing rivals' items. The steps above the company ought to go for the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The company could 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.
