Samsung Electronics Company Global Marketing Operations Case Study Solution and Analysis
Intro
Samsung Electronics Company Global Marketing Operations 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 service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Samsung Electronics Company Global Marketing Operations Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Samsung Electronics Company Global Marketing Operations Case Study Analysis has particular strengths that can be used to lower the hazards, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Samsung Electronics Company Global Marketing Operations Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position enables the business to think about numerous advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Samsung Electronics Company Global Marketing Operations Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining given that 2008, impacting Samsung Electronics Company Global Marketing Operations Case Study Analysis as well, however the development might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned particular hazards to Samsung Electronics Company Global Marketing Operations Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Samsung Electronics Company Global Marketing Operations Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be computed. However, the general financial performance of the business might be examined by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Samsung Electronics Company Global Marketing Operations Case Study Analysis is growing and the company is quite effective in bring in a large number of clients at a prospective rate.
Along with it, the second graph which reveals the annual growth in the Samsung Electronics Company Global Marketing Operations Case Study Solution overall properties, reveals that the business is quite effective in adding worth to its assets through its profits. The growth in assets shows that the overall worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given information might be the analysis regarding the distribution of overall profits of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Samsung Electronics Company Global Marketing Operations Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Samsung Electronics Company Global Marketing Operations Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Samsung Electronics Company Global Marketing Operations Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing industry growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must initially collects the information related to the customer need, the possible markets, the government regulations and the data related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a hazard to the business's long term presence, but the circumstance can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
