Organickidz Marketing Strategy Case Study Solution and Analysis
Organickidz Marketing Strategy Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing information and interaction services. Major company segments of the company include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items include books, regulars, online media, exhibits, research reports and so on. Organickidz Marketing Strategy Case Study Analysis has become a specialized info supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Organickidz Marketing Strategy Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Organickidz Marketing Strategy Case Study Help has specific strengths that can be used to lower the risks, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Organickidz Marketing Strategy Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the company to consider several development chances with no worry of raising fund externally.
In addition to the strengths, the business has specific weaknesses which might increase restraints for the company in executing its development program. The weak points of Organickidz Marketing Strategy Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is declining given that 2008, impacting Organickidz Marketing Strategy Case Study Analysis too, however the development might be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has posed certain risks to Organickidz Marketing Strategy Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Organickidz Marketing Strategy Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competitors increases the hazard of losing the client base.
Due to lack of data, the financial ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual total incomes of Organickidz Marketing Strategy Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a big number of consumers at a potential rate.
Together with it, the second graph which reveals the yearly growth in the Organickidz Marketing Strategy Case Study Help total assets, shows that the company is rather efficient in adding value to its assets through its profits. The development in properties shows that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis concerning the distribution of overall incomes of the business. Major part of the revenues of CMP comes 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 could be performed to learn the different external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces impacting Organickidz Marketing Strategy Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Organickidz Marketing Strategy Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the overall organisation at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Organickidz Marketing Strategy Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the threat of alternative for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Organickidz Marketing Strategy Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Organickidz Marketing Strategy Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in different market sections, with a major focus on academic publications. CIP functions 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 market share of Organickidz Marketing Strategy Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Organickidz Marketing Strategy Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an immediate option to avoid the decreasing market growth. Introduction of digital publishing might show to be an instant service with low amount of danger for the business. However, the business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should first gathers the data connected to the consumer demand, the prospective markets, the government regulations and the information associated with the rivals provided in the market. After that, the business ought to decide one potential segment for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business should go for the preliminary offering. The business should go for the other markets if the initial offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Although, the development of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term presence, but the circumstance can be controlled by considering 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 avoid the risk of failure for entryway in the new markets.