Social Media Content Strategy At Ayojak Case Study Solution and Analysis
Intro
Social Media Content Strategy At Ayojak Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing market in general and Social Media Content Strategy At Ayojak Case Study Help in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Social Media Content Strategy At Ayojak Case Study Analysis has particular strengths that can be made use of to reduce the threats, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Social Media Content Strategy At Ayojak Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the company to think about several advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which could increase restraints for the business in executing its development program. The weak points of Social Media Content Strategy At Ayojak Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Social Media Content Strategy At Ayojak Case Study Help too, however the growth might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has postured specific hazards to Social Media Content Strategy At Ayojak Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Social Media Content Strategy At Ayojak Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be computed. Nevertheless, the overall financial performance of the company might be evaluated by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Social Media Content Strategy At Ayojak Case Study Analysis is growing and the business is quite efficient in drawing in a a great deal of consumers at a prospective price.
In addition to it, the second chart which reveals the annual development in the Social Media Content Strategy At Ayojak Case Study Solution total assets, shows that the business is quite efficient in including worth to its assets through its incomes. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis regarding the distribution of overall profits of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Social Media Content Strategy At Ayojak Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total organisation at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative products and so on. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Social Media Content Strategy At Ayojak Case Study Help. Nevertheless, the customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Social Media Content Strategy At Ayojak Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies 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 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw 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 enter in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the virtual libraries on specific websites. The changing consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Social Media Content Strategy At Ayojak Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Social Media Content Strategy At Ayojak Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective 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 introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an immediate option to avoid the decreasing market growth. For that reason, introduction of digital publishing could prove to be an immediate service with low amount of threat for the business. However, the company could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to initially collects the information related to the customer demand, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a risk to the company's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
