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 Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a large detailed 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 Analysis has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue 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 Solution has particular strengths that can be used to minimize the dangers, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong monetary position permits the company to consider numerous development chances without any worry of raising fund externally.
Along with the strengths, the company has certain weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is decreasing given that 2008, impacting The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis too, however the development might be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured particular threats to The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the danger of losing the consumer base.
Due to lack of data, the monetary ratios of CMP could 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 development rate, revealing that the yearly need of the products of CMP is growing and the company is rather effective in drawing in a big number of consumers at a possible cost.
Along with it, the 2nd graph which shows the annual development in the The Dannon Company Marketing And Corporate Social Responsibility B Case Study Analysis total possessions, shows that the business is rather effective in including worth to its assets through its profits. The growth in possessions reveals 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 given information could be the analysis regarding the circulation of overall earnings of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a possible development to attain its future advancement objective.
PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored 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 Case Study Help service 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 income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general business at CPM. China's financial 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 checking out useful products etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces impacting The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the files provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the danger of substitution for the market.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help consist of the suppliers 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 buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a major focus on educational publications. CIP acts 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 might wean the market share of The Dannon Company Marketing And Corporate Social Responsibility B Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as The Dannon Company Marketing And Corporate Social Responsibility B Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its products in the market.
As the choices are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market development. The business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially collects the information related to the customer need, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing given that 2008, showing a hazard to the company'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 execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.