Six Ways Marketing Can Change The World 2 Case Study Solution and Analysis
Introduction
Six Ways Marketing Can Change The World 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing information and communication services. Major business sections of the company include; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its significant items include books, regulars, online media, exhibits, research study reports and so on. Six Ways Marketing Can Change The World 2 Case Study Help has ended up being a specialized details supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Six Ways Marketing Can Change The World 2 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 business 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
Six Ways Marketing Can Change The World 2 Case Study Solution has particular strengths that can be utilized to decrease the hazards, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Six Ways Marketing Can Change The World 2 Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position enables the business to consider numerous advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restrictions for the company in executing its development program. The weak points of Six Ways Marketing Can Change The World 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting Six Ways Marketing Can Change The World 2 Case Study Solution also, however the growth could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer 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 using its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has posed particular dangers to Six Ways Marketing Can Change The World 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Six Ways Marketing Can Change The World 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be determined. However, the total financial performance of the business could be evaluated by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Six Ways Marketing Can Change The World 2 Case Study Solution is growing and the business is rather effective in attracting a a great deal of customers at a potential price.
Together with it, the second chart which reveals the yearly development in the Six Ways Marketing Can Change The World 2 Case Study Solution total assets, shows that the business is quite effective in including worth to its properties through its incomes. The development in properties shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given information could be the analysis relating to the circulation of overall earnings of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Six Ways Marketing Can Change The World 2 Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the general service at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Six Ways Marketing Can Change The World 2 Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Six Ways Marketing Can Change The World 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest 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 market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Six Ways Marketing Can Change The World 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major focus on academic publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Six Ways Marketing Can Change The World 2 Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Six Ways Marketing Can Change The World 2 Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an immediate option to prevent the declining industry growth. For that reason, introduction of digital publishing could show to be an immediate service with low amount of danger for the business. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first gathers the data related to the consumer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, showing a risk to the business's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
