The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Solution and Analysis
Intro
The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Analysis 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; gathering info, processing details and communication services. Major service sections of the company consist of; books, regulars, consultancy and circulation. The business has a huge item portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Help has actually ended up being a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized 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
The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Solution has specific strengths that can be made use of to decrease the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the business to consider several development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its development program. The weak points of The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Analysis as well, but the growth could be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has positioned specific risks to The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. However, the overall financial performance of the company might be analyzed by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Analysis is growing and the company is quite efficient in attracting a large number of customers at a prospective cost.
Together with it, the 2nd chart which shows the yearly growth in the The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Solution total possessions, reveals that the business is rather efficient in adding worth to its possessions through its incomes. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the distribution of total earnings of the business. 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 business might move towards other organisation sectors with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick 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 the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP service are high. The government policies relating to 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 costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used 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 policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved 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 used to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market 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 competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a significant concentrate on educational publications. CIP serves 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 might wean the market share of The Dannon Company Marketing And Corporate Social Responsibility A 2 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business need an immediate service to avoid the declining industry growth. Intro of digital publishing might show to be an instant solution with low quantity of risk for the business. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to initially gathers the data connected to the consumer demand, the possible markets, the federal government regulations and the data related to the competitors presented in the market. After that, the business should decide one prospective segment for its preliminary offering. It ought to gather research that how it might separate its digital publishing from the existing rivals' products. The steps above the business ought to go for the preliminary offering. If the preliminary offering proves a success, the company should choose the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a risk to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
