The Dannon Company Marketing And Corporate Social Responsibility A Case Study Solution and Analysis
Intro
The Dannon Company Marketing And Corporate Social Responsibility A Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information supplier and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, The Dannon Company Marketing And Corporate Social Responsibility A Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several questions 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 company could be made use of 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 Case Study Analysis has certain strengths that can be used to reduce the threats, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Dannon Company Marketing And Corporate Social Responsibility A Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position permits the company to think about a number of development chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which could increase restraints for the company in executing its advancement program. The weak points of The Dannon Company Marketing And Corporate Social Responsibility A Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, 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 growth. It needs to propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, affecting The Dannon Company Marketing And Corporate Social Responsibility A Case Study Solution as well, however the growth could be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing 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 decrease its dependence over Chinese markets by using its vast funds.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific risks to The Dannon Company Marketing And Corporate Social Responsibility A Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of The Dannon Company Marketing And Corporate Social Responsibility A Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to presence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be calculated. The general financial efficiency of the business could be analyzed by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of The Dannon Company Marketing And Corporate Social Responsibility A Case Study Solution is growing and the business is quite effective in bring in a large number of consumers at a potential price.
Along with it, the 2nd chart which reveals the annual development in the The Dannon Company Marketing And Corporate Social Responsibility A Case Study Help overall properties, shows that the business is quite effective in including value to its possessions through its earnings. The development in possessions reveals that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the given data might be the analysis concerning the distribution of overall earnings of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces impacting The Dannon Company Marketing And Corporate Social Responsibility A Case Study Solution business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Dannon Company Marketing And Corporate Social Responsibility A Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used 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 approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Dannon Company Marketing And Corporate Social Responsibility A Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Dannon Company Marketing And Corporate Social Responsibility A Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks second and third in various market sections, with a significant concentrate on educational publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Dannon Company Marketing And Corporate Social Responsibility A Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as The Dannon Company Marketing And Corporate Social Responsibility A Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger 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 company segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate solution to prevent the decreasing industry growth. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially collects the information associated with the customer demand, the prospective markets, the federal government policies and the information related to the competitors provided in the market. After that, the business ought to choose one possible sector for its initial offering. It should collect research that how it might differentiate its digital publishing from the existing competitors' products. The actions above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the company needs to opt for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a risk to the business's long term presence, however the scenario can be controlled by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
