Pahalwan Need For A New Marketing Strategy Case Study Solution and Analysis
Intro
Pahalwan Need For A New Marketing Strategy Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing information and communication services. Significant service sectors of the business include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports etc. Pahalwan Need For A New Marketing Strategy Case Study Solution has actually become a specialized information service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Pahalwan Need For A New Marketing Strategy Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Pahalwan Need For A New Marketing Strategy Case Study Analysis has certain strengths that can be made use of to minimize the risks, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Pahalwan Need For A New Marketing Strategy Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the business to consider a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Pahalwan Need For A New Marketing Strategy Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, affecting Pahalwan Need For A New Marketing Strategy Case Study Analysis as well, but the growth might be restored by availing particular opportunities presented 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 customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has positioned specific dangers to Pahalwan Need For A New Marketing Strategy Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Pahalwan Need For A New Marketing Strategy Case Study Analysis due to the customer shift towards digital libraries.
• The presence 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 certain techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be determined. The total monetary efficiency of the company could be examined by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Pahalwan Need For A New Marketing Strategy Case Study Help is growing and the company is rather efficient in attracting a large number of customers at a potential price.
Together with it, the second chart which shows the annual growth in the Pahalwan Need For A New Marketing Strategy Case Study Analysis overall properties, reveals that the company is quite efficient in including worth to its assets through its earnings. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis relating to the distribution of overall earnings of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out helpful materials etc. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the Pahalwan Need For A New Marketing Strategy Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Pahalwan Need For A New Marketing Strategy Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Pahalwan Need For A New Marketing Strategy Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry 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. Significant competitors of Pahalwan Need For A New Marketing Strategy Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might 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 present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• 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 need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an instant solution to avoid the declining industry growth. Introduction of digital publishing might prove to be an instant solution with low quantity of threat for the company. However, the company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to initially collects the data related to the customer need, the potential markets, the government policies and the information connected to the rivals provided in the market. After that, the business needs to decide one potential sector for its preliminary offering. It ought to collect research study that how it might separate its digital publishing from the existing rivals' items. After all the actions above the business need to choose the initial offering. If the initial offering proves a success, the business needs to opt for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a risk to the business's long term existence, but the circumstance can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
