Should You Punish Or Reward Current Customers Case Study Solution and Analysis
Intro
Should You Punish Or Reward Current Customers Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and Should You Punish Or Reward Current Customers Case Study Analysis in specific. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Should You Punish Or Reward Current Customers Case Study Help has certain strengths that can be utilized to reduce the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Should You Punish Or Reward Current Customers Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high value to its clients.
• Strong monetary position allows the business to think about a number of development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Should You Punish Or Reward Current Customers Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to 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, affecting Should You Punish Or Reward Current Customers Case Study Help as well, but the growth might be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually posed specific dangers to Should You Punish Or Reward Current Customers Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Should You Punish Or Reward Current Customers Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be computed. The overall monetary performance of the company could be analyzed by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Should You Punish Or Reward Current Customers Case Study Help is growing and the business is quite effective in attracting a a great deal of clients at a prospective price.
Along with it, the 2nd chart which reveals the annual development in the Should You Punish Or Reward Current Customers Case Study Solution overall possessions, reveals that the company is quite efficient in adding worth to its assets through its revenues. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis concerning the distribution of total profits of the business. Huge part of the profits 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 company segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings 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.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Should You Punish Or Reward Current Customers Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to examine the attractiveness 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 growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Should You Punish Or Reward Current Customers Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Should You Punish Or Reward Current Customers Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 current market situation.
Posts and telecommunication Press (PTP).
Another close rival 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 regards to service scale. It is also one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate option to avoid the decreasing industry growth. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must initially collects the information associated with the consumer demand, the possible markets, the federal government policies and the information associated with the competitors provided in the market. After that, the business needs to choose one prospective segment for its initial offering. It ought to collect research study that how it might separate its digital publishing from the existing competitors' products. The steps above the business must go for the initial offering. The company should go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a threat to the company's long term existence, however the scenario can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
