The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution and Analysis
The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing information and communication services. Major organisation segments of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis has become a specialized information company and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 valuable 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?
The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help has particular strengths that can be made use of to decrease the threats, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position permits the business to consider several advancement opportunities without any fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company 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 ought to propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is decreasing since 2008, affecting The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution too, but the development could be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular threats to The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry along with existence of high competitors increases the danger of losing the customer base.
Due to absence of information, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total earnings of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a big number of clients at a potential rate.
Together with it, the 2nd chart which reveals the annual growth in the The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis total assets, reveals that the company is rather effective in adding worth to its assets through its revenues. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the circulation of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a prospective growth to achieve its future advancement goal.
PESTEL analysis could be carried out to find out the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated 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.
Economic forces impacting the publishing sector in basic and the The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. Together with it, the financial policies connected to the import of books affect the total company at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out useful products etc. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution consists of the concerns of ecological 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 harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive competition in the publishing market 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 competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market 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 files at competitive prices.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the declining industry growth. The business might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first collects the information associated with the consumer demand, the possible markets, the government regulations and the data connected to the competitors presented in the market. After that, the business needs to choose one prospective sector for its preliminary offering. It must collect research study that how it could separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the initial offering. If the preliminary offering proves a success, the business should go for the other markets. In this method the company would have the ability to execute its digital publishing program.
The development of the publishing industry is decreasing given that 2008, showing a danger to the company's long term presence, but the circumstance can be managed by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.