Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Solution and Analysis
Intro
Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting info, processing details and communication services. Major business sections of the business consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Analysis has become a specialized info service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be made use of 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
Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Analysis has certain strengths that can be used to minimize the risks, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position allows the company to think about a number of development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Analysis as well, however the growth could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually posed specific dangers to Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market along with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual overall incomes of Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather efficient in bring in a large number of customers at a possible price.
Along with it, the second chart which shows the annual growth in the Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Analysis overall assets, reveals that the company is quite efficient in including worth to its assets through its incomes. The growth in possessions shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered information might be the analysis relating to the circulation of total incomes of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces affecting Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Help company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the total service at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Ontela Picdeck B Customer Segmentation Targeting And Positioning 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 disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the documents presented in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the threat 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 Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier 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 purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in numerous market segments, with a major concentrate on academic publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Ontela Picdeck B Customer Segmentation Targeting And Positioning Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing market development. Introduction of digital publishing might prove to be an instant solution with low quantity of danger for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must initially collects the data associated with the customer demand, the prospective markets, the federal government policies and the data associated with the rivals provided in the market. After that, the business should choose one potential segment for its initial offering. It must gather research that how it could distinguish its digital publishing from the existing competitors' items. After all the steps above the business must opt for the initial offering. If the initial offering shows a success, the company ought to go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a threat to the company's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
