Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Solution and Analysis
Intro
Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement 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 circumstance? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help has specific strengths that can be used to reduce the hazards, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the company to consider a number of development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help as well, however the growth might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer 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 financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured specific threats to Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. The overall monetary performance of the business could be examined by using the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help is growing and the business is quite effective in drawing in a a great deal of customers at a potential rate.
Together with it, the 2nd graph which reveals the annual development in the Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Analysis overall properties, shows that the company is quite efficient in including value to its properties through its incomes. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis concerning the distribution of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative products and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry 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. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 marketplace saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in various market segments, with a significant focus on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Selling Strategic Issues Crafting The Content Of The Sales Pitch Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
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 demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business need an instant service to avoid the declining market growth. Therefore, intro of digital publishing could show to be an instant option with low amount of danger for the company. The business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should first gathers the data associated with the customer need, the prospective markets, the federal government regulations and the information related to the competitors presented in the market. After that, the company ought to choose one possible section for its initial offering. It must gather research that how it might distinguish its digital publishing from the existing competitors' items. The actions above the company should go for the preliminary offering. The business must go for the other markets if the initial offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term existence, but the scenario 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 advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
