Selling To Millennials With Online Reviews Case Study Solution and Analysis
Intro
Selling To Millennials With Online Reviews Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Selling To Millennials With Online Reviews Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Selling To Millennials With Online Reviews Case Study Solution has certain strengths that can be utilized to minimize the threats, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Selling To Millennials With Online Reviews Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position enables the company to think about numerous advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Selling To Millennials With Online Reviews Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, affecting Selling To Millennials With Online Reviews Case Study Solution too, however the development might be restored by availing particular opportunities provided 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 might consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has presented certain dangers to Selling To Millennials With Online Reviews Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Selling To Millennials With Online Reviews Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be determined. The overall financial performance of the business might be evaluated by utilizing the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Selling To Millennials With Online Reviews Case Study Help is growing and the business is rather efficient in drawing in a a great deal of customers at a prospective rate.
In addition to it, the 2nd chart which shows the annual growth in the Selling To Millennials With Online Reviews Case Study Solution total assets, shows that the business is quite effective in adding value to its possessions through its profits. The growth in possessions shows that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the circulation of total revenues of the company. Huge part of the profits 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 service sections with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the overall political forces affecting Selling To Millennials With Online Reviews Case Study Solution business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate 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 informative materials etc. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the Selling To Millennials With Online Reviews Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Selling To Millennials With Online Reviews Case Study Analysis 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 non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered 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 utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Selling To Millennials With Online Reviews Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Selling To Millennials With Online Reviews Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Selling To Millennials With Online Reviews Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the decreasing industry development. Introduction of digital publishing might prove to be an instant solution with low quantity of danger for the company. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the information related to the consumer demand, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business must 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 declining given that 2008, showing a hazard to the company's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
