Smartick Market Positioning Strategy Case Study Solution and Analysis
Introduction
Smartick Market Positioning Strategy Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and Smartick Market Positioning Strategy Case Study Help in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing 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 questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business 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
Smartick Market Positioning Strategy Case Study Help has particular strengths that can be used to minimize the risks, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Smartick Market Positioning Strategy Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the business to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Smartick Market Positioning Strategy Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Smartick Market Positioning Strategy Case Study Solution as well, but the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured particular threats to Smartick Market Positioning Strategy Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Smartick Market Positioning Strategy Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific strategies like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be calculated. The overall monetary efficiency of the company could be analyzed by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Smartick Market Positioning Strategy Case Study Solution is growing and the company is rather effective in attracting a large number of consumers at a potential price.
In addition to it, the second chart which shows the annual development in the Smartick Market Positioning Strategy Case Study Help overall properties, shows that the business is rather efficient in adding value to its assets through its revenues. The growth in possessions shows that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data might be the analysis concerning the circulation of overall incomes of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Smartick Market Positioning Strategy Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Along with it, the economic policies connected to the import of books affect the overall business at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Smartick Market Positioning Strategy Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals 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 industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on specific sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market 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 Supplier.
The major providers of the Smartick Market Positioning Strategy Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Smartick Market Positioning Strategy Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Smartick Market Positioning Strategy Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the decreasing market development. Therefore, introduction of digital publishing could show to be an immediate option with low amount of threat for the business. Nevertheless, the business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first gathers the data related to the consumer demand, the potential markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a threat to the company's long term presence, however the scenario can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
