Strategic Perspective On Sales Promotions 2 Case Study Solution and Analysis
Intro
Strategic Perspective On Sales Promotions 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and Strategic Perspective On Sales Promotions 2 Case Study Solution in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• 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 capabilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strategic Perspective On Sales Promotions 2 Case Study Analysis has specific strengths that can be made use of to reduce the risks, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Strategic Perspective On Sales Promotions 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the company to consider a number of development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restrictions for the business in executing its advancement program. The weak points of Strategic Perspective On Sales Promotions 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional 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 expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing considering that 2008, affecting Strategic Perspective On Sales Promotions 2 Case Study Solution as well, but the growth could be restored by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has postured specific dangers to Strategic Perspective On Sales Promotions 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Strategic Perspective On Sales Promotions 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 hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. The general monetary efficiency of the company might be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of Strategic Perspective On Sales Promotions 2 Case Study Solution is growing and the company is quite efficient in attracting a large number of consumers at a prospective price.
Along with it, the second graph which shows the annual growth in the Strategic Perspective On Sales Promotions 2 Case Study Analysis total properties, reveals that the business is rather efficient in including worth to its assets through its profits. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the distribution of overall profits of the business. Major part of the incomes 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 service segments with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Strategic Perspective On Sales Promotions 2 Case Study Help company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading useful products and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Strategic Perspective On Sales Promotions 2 Case Study Help. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Strategic Perspective On Sales Promotions 2 Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the files presented in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry 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. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Strategic Perspective On Sales Promotions 2 Case Study Analysis 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 overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Strategic Perspective On Sales Promotions 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining market development. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the consumer need, the potential markets, the government regulations and the data connected to the rivals presented in the market. After that, the company ought to decide one potential segment for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business must go for the preliminary offering. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a threat to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
