The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Solution and Analysis
Intro
The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing info and interaction services. Major service sections of the company include; books, regulars, consultancy and circulation. The business has a huge item portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Help has actually ended up being a specialized info supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns 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 made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Help has specific strengths that can be used to decrease the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong monetary position permits the company to consider numerous development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining since 2008, impacting The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Help as well, but the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has posed particular threats to The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market in addition to presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total earnings of The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a big number of customers at a potential rate.
Together with it, the 2nd graph which shows the annual development in the The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Analysis overall assets, shows that the business is rather effective in including worth to its assets through its incomes. The growth in possessions shows that the total worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the overall service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading useful materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Solution. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Dannon Company Marketing And Corporate Social Responsibility B 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 non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the documents provided in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Help include 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.
Haggling power of purchaser 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 buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Dannon Company Marketing And Corporate Social Responsibility B 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition 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 demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an immediate solution to prevent the declining market development. Therefore, intro of digital publishing might prove to be an instant option with low amount of risk for the company. However, the company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should initially gathers the information connected to the consumer need, the possible markets, the federal government policies and the data related to the competitors provided in the market. After that, the company should choose one potential sector for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing rivals' products. The steps above the business should go for the preliminary offering. If the initial offering proves a success, the company ought to opt for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, showing a danger to the company's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
