New Marketing Strategy Case Study Solution and Analysis
Intro
New Marketing Strategy Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, New Marketing Strategy Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business 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
New Marketing Strategy Case Study Solution has certain strengths that can be made use of to minimize the risks, overcome the weakness and avail 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 enables the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position permits the business to think about numerous advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the business in implementing its development program. The weak points of New Marketing Strategy Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business 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 must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting New Marketing Strategy Case Study Help also, but the development might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence 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 actually positioned specific threats to New Marketing Strategy Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of New Marketing Strategy Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total revenues of New Marketing Strategy Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather efficient in bring in a big number of customers at a potential rate.
Together with it, the 2nd graph which shows the yearly development in the New Marketing Strategy Case Study Solution total assets, reveals that the company is quite efficient in adding value to its assets through its revenues. The development in properties shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis relating to the circulation of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting New Marketing Strategy Case Study Analysis organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the New Marketing Strategy Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the overall company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting New Marketing Strategy Case Study Help includes the issues of ecological communities 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 used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the virtual libraries on certain websites. The altering customer choices towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the New Marketing Strategy Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general 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 a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of New Marketing Strategy Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and third in numerous market sectors, with a significant 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 concentrated on digital publishing and could wean the marketplace share of New Marketing Strategy Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 service sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate option to prevent the decreasing market growth. The business could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data connected to the consumer need, the potential markets, the federal government policies and the information related to the rivals provided in the market. After that, the business ought to decide one prospective section for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company must opt for the initial offering. The business should go for the other markets if the initial offering shows a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
