The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution and Analysis
Intro
The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing details and interaction services. Significant business sections of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major items consist of books, regulars, online media, exhibitions, research reports and so on. The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution has actually become a specialized details company and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 abilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Help has particular strengths that can be made use of to decrease the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the company to consider numerous development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase restraints for the business in executing its development program. The weak points of The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional 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 plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Help also, but the growth might be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has presented particular threats to The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market along with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be calculated. The overall monetary efficiency of the company might be evaluated by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution is growing and the company is rather effective in attracting a large number of clients at a potential cost.
In addition to it, the second chart which shows the yearly development in the The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Analysis total possessions, reveals that the company is rather efficient in adding worth to its properties through its earnings. The development in assets shows that the total worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading informative products etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in different market sectors, with a significant focus on instructional publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as The Creative Industries Managing And Marketing Talent Module Note 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition 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 company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate option to prevent the decreasing market growth. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first collects the data related to the consumer demand, the possible markets, the government policies and the data related to the rivals presented in the market. After that, the company ought to choose one prospective section for its preliminary offering. It should collect research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the business need to go for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a threat to the business's long term presence, but the circumstance can be controlled by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
