The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Solution and Analysis
Introduction
The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing details and communication services. Major company segments of the business include; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports etc. The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Solution has become a specialized information supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of 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 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
The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Help has particular strengths that can be used to reduce the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position permits the company to think about several advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways 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 growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, impacting The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Analysis too, however the development might be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented certain dangers to The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of The Branding Challenges Of Asian Manufacturing Firms 2 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 hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry together with existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall profits of The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in drawing in a large number of consumers at a potential rate.
Along with it, the second graph which shows the yearly growth in the The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Solution overall properties, shows that the business is rather effective in including worth to its possessions through its incomes. The development in possessions reveals that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the circulation of overall profits of the business. Major part of the earnings 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 service sections with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the general company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Solution. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Solution includes the concerns of environmental communities 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 must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents presented in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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 also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Branding Challenges Of Asian Manufacturing Firms 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 could wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors 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 products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an instant option to prevent the decreasing market growth. Intro of digital publishing could show to be an immediate option with low quantity of risk for the business. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the information related to the customer need, the possible markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term presence, however the situation can be controlled by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
