Starwood Hotels Innovation Through Marketing Case Study Solution and Analysis
Introduction
Starwood Hotels Innovation Through Marketing Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Starwood Hotels Innovation Through Marketing Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of 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 capabilities of the company 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
Starwood Hotels Innovation Through Marketing Case Study Help has specific strengths that can be utilized to decrease the threats, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Starwood Hotels Innovation Through Marketing Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position permits the business to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase constraints for the company in executing its advancement program. The weak points of Starwood Hotels Innovation Through Marketing Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining since 2008, affecting Starwood Hotels Innovation Through Marketing Case Study Solution as well, but the growth could be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has posed particular risks to Starwood Hotels Innovation Through Marketing Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Starwood Hotels Innovation Through Marketing Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total earnings of Starwood Hotels Innovation Through Marketing Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is rather efficient in attracting a big number of clients at a possible cost.
Along with it, the second chart which shows the yearly growth in the Starwood Hotels Innovation Through Marketing Case Study Help overall assets, reveals that the business is quite effective in including worth to its properties through its revenues. The growth in assets shows that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the distribution of overall earnings of the company. Major part of the revenues 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 organisation sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting Starwood Hotels Innovation Through Marketing Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Starwood Hotels Innovation Through Marketing Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading useful materials etc. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Starwood Hotels Innovation Through Marketing Case Study Help. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Starwood Hotels Innovation Through Marketing Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of 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 industry. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Starwood Hotels Innovation Through Marketing Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Starwood Hotels Innovation Through Marketing Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks second and third in various market sections, with a major focus on academic publications. CIP serves as a threat 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 Starwood Hotels Innovation Through Marketing Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Starwood Hotels Innovation Through Marketing Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus 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 products in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an immediate option to avoid the decreasing industry growth. The business could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the customer demand, the possible markets, the federal government policies and the information connected to the competitors provided in the market. After that, the business should decide one possible section for its initial offering. It needs to gather research that how it could differentiate its digital publishing from the existing competitors' products. The actions above the company must go for the preliminary offering. The business should go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, showing a danger to the business's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
