Sony Ericsson Marketing The Next Music Phone 2 Case Study Solution and Analysis
Introduction
Sony Ericsson Marketing The Next Music Phone 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info company and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and Sony Ericsson Marketing The Next Music Phone 2 Case Study Help in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sony Ericsson Marketing The Next Music Phone 2 Case Study Analysis has certain strengths that can be utilized to minimize the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Sony Ericsson Marketing The Next Music Phone 2 Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the business to think about numerous development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Sony Ericsson Marketing The Next Music Phone 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Sony Ericsson Marketing The Next Music Phone 2 Case Study Analysis as well, but the growth could be restored by availing specific chances provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has positioned specific hazards to Sony Ericsson Marketing The Next Music Phone 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Sony Ericsson Marketing The Next Music Phone 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be computed. The total financial efficiency of the company might be analyzed by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Sony Ericsson Marketing The Next Music Phone 2 Case Study Solution is growing and the business is quite efficient in drawing in a large number of consumers at a prospective cost.
Along with it, the second graph which shows the yearly growth in the Sony Ericsson Marketing The Next Music Phone 2 Case Study Analysis overall properties, shows that the company is rather effective in including worth to its assets through its revenues. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the circulation of overall profits of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Sony Ericsson Marketing The Next Music Phone 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books affect the overall service at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Sony Ericsson Marketing The Next Music Phone 2 Case Study Help includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published files is the files presented in the digital libraries on specific websites. The altering customer choices towards digital learning increase the threat of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Sony Ericsson Marketing The Next Music Phone 2 Case Study Solution 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.
Haggling power of purchaser 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 needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sony Ericsson Marketing The Next Music Phone 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks second and third in different market segments, with a significant concentrate on instructional publications. CIP acts as a risk 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 market share of Sony Ericsson Marketing The Next Music Phone 2 Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Sony Ericsson Marketing The Next Music Phone 2 Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments 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 company 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 business require an immediate solution to prevent the declining market development. For that reason, intro of digital publishing might show to be an instant option with low quantity of danger for the company. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first gathers the information related to the consumer need, the prospective markets, the government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a threat to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The business might think about introducing 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.
