The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution and Analysis
Intro
The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering details, processing information and communication services. Major business sections of the company include; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Help has actually ended up being a specialized info company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in general and The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Analysis in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be utilized 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 Creative Industries Managing And Marketing Talent Module Note 3 Case Study Help has particular strengths that can be utilized to decrease the risks, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution 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 abilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position enables the company to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which could increase restraints for the company in implementing its advancement program. The weak points of The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution too, but the development could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has presented certain risks to The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be determined. However, the total monetary performance of the company could be evaluated by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution is growing and the business is quite efficient in attracting a large number of customers at a potential rate.
Along with it, the 2nd graph which reveals the yearly development in the The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution total assets, reveals that the business is quite efficient in adding worth to its assets through its incomes. The development in properties shows that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the distribution of total profits of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Help company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks third and second in numerous market sections, with a significant focus on instructional publications. CIP serves as a hazard 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 The Creative Industries Managing And Marketing Talent Module Note 3 Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products 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 advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an instant service to prevent the decreasing market growth. Introduction of digital publishing could prove to be an instant solution with low amount of threat for the company. Nevertheless, the company could also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first gathers the data related to the customer need, the prospective markets, the government guidelines and the data associated with the rivals presented in the market. After that, the business must decide one prospective section for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing competitors' products. After all the actions above the business ought to opt for the preliminary offering. If the initial offering shows a success, the company needs to opt for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a risk to the business's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
