Sales Management A Research On Performance Improvement Case Study Solution and Analysis
Introduction
Sales Management A Research On Performance Improvement Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Sales Management A Research On Performance Improvement Case Study Analysis in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation 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 situation? Do the long important 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
Sales Management A Research On Performance Improvement Case Study Help has certain strengths that can be used to decrease the hazards, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Sales Management A Research On Performance Improvement Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the company to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Sales Management A Research On Performance Improvement Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, impacting Sales Management A Research On Performance Improvement Case Study Solution too, but the growth could be revived by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually presented specific dangers to Sales Management A Research On Performance Improvement Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Sales Management A Research On Performance Improvement Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total profits of Sales Management A Research On Performance Improvement Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite effective in attracting a large number of clients at a potential price.
In addition to it, the second chart which shows the annual development in the Sales Management A Research On Performance Improvement Case Study Analysis overall assets, shows that the business is rather efficient in adding value to its assets through its incomes. The development in properties reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis relating to the distribution of overall incomes of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the general political forces affecting Sales Management A Research On Performance Improvement Case Study Analysis business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand 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 highest population on the planet with a high population growth, revealing the increasing number of consumers of the Sales Management A Research On Performance Improvement Case Study Help. However, the customer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Sales Management A Research On Performance Improvement Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on certain websites. The altering customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Sales Management A Research On Performance Improvement Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sales Management A Research On Performance Improvement Case Study Analysis 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 same duration, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a significant focus on educational publications. CIP functions 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 marketplace share of Sales Management A Research On Performance Improvement Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Sales Management A Research On Performance Improvement Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an immediate option to avoid the decreasing industry development. The company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should first gathers the information related to the customer demand, the prospective markets, the government regulations and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a threat to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
