Philips Marketing Plan Case Study Solution and Analysis
Philips Marketing Plan Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Philips Marketing Plan Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised a number of questions 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 company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Philips Marketing Plan Case Study Solution has particular strengths that can be made use of to minimize the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Philips Marketing Plan Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position allows the company to think about numerous development chances without any worry of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Philips Marketing Plan Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing given that 2008, impacting Philips Marketing Plan Case Study Analysis too, but the growth could be restored by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed particular hazards to Philips Marketing Plan Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Philips Marketing Plan Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the customer base.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly overall earnings of Philips Marketing Plan Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in bring in a large number of clients at a prospective price.
Together with it, the second graph which shows the annual growth in the Philips Marketing Plan Case Study Solution overall properties, shows that the company is rather effective in adding value to its possessions through its revenues. The development in properties shows that the total value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the distribution of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a possible development to attain its future development goal.
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative materials and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Philips Marketing Plan Case Study Analysis. However, 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 fulfill the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Philips Marketing Plan Case Study Solution includes the concerns of ecological communities 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 regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big 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 Market. The substitute items for the released files is the documents provided in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the risk of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Philips Marketing Plan Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 purchasers requires high quality documents at competitive prices.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Philips Marketing Plan Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an instant solution to avoid the decreasing industry development. Introduction of digital publishing could prove to be an instant service with low amount of risk for the business. The business might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information connected to the consumer need, the possible markets, the federal government policies and the data connected to the competitors presented in the market. After that, the business should choose one potential sector for its initial offering. It needs to gather research study that how it might separate its digital publishing from the existing rivals' items. After all the steps above the company need to choose the initial offering. If the initial offering shows a success, the company should choose the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, showing a risk to the company's long term presence, however the situation can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.