Sales Management A Research On Performance Improvement Case Study Solution and Analysis
Sales Management A Research On Performance Improvement Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Sales Management A Research On Performance Improvement Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 scenario? Do the long valuable 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?
Sales Management A Research On Performance Improvement Case Study Help has particular strengths that can be utilized to minimize the hazards, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sales Management A Research On Performance Improvement 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 generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong financial position allows the business to consider a number of development chances with no worry of raising fund externally.
Along with the strengths, the company has specific weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of Sales Management A Research On Performance Improvement Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional 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 certain growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is declining given that 2008, affecting Sales Management A Research On Performance Improvement Case Study Analysis also, however the development might be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using 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 minimize its dependence over Chinese markets by using its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing market has presented certain hazards to Sales Management A Research On Performance Improvement Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Sales Management A Research On Performance Improvement Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the risk of losing the consumer base.
Due to lack of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall profits of Sales Management A Research On Performance Improvement Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in attracting a big number of consumers at a potential rate.
Along with it, the second chart which shows the yearly development in the Sales Management A Research On Performance Improvement Case Study Analysis total possessions, shows that the company is rather efficient in adding worth to its properties through its incomes. The development in assets shows that the overall worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the distribution of overall earnings of the company. Huge 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 might move towards other company segments with a prospective growth to attain its future development goal.
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Sales Management A Research On Performance Improvement Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Sales Management A Research On Performance Improvement Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the general business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
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 include the technological advancement in the reading strategies etc. Enhancement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Sales Management A Research On Performance Improvement Case Study Analysis consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the digital libraries on certain sites. The altering customer choices towards digital knowing increase the hazard of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace 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 providers of the paper for releasing documents. 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.
Negotiating 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 market saturation, the buyers needs high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the existence of large number of rivals. Nevertheless, 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 Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing industry development. The business might likewise consider the expansion 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 demand, the possible markets, the government guidelines and the data connected to the competitors provided in the market. After that, the business should choose one possible segment for its initial offering. It must collect research that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the business should go for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining since 2008, revealing a danger to the company's long term existence, but the circumstance can be controlled by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.