The High Price Of Customer Satisfaction Case Study Solution and Analysis
Intro
The High Price Of Customer Satisfaction Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing information and communication services. Significant business segments of the company include; books, regulars, consultancy and circulation. The business has a large item portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports etc. The High Price Of Customer Satisfaction Case Study Solution has become a specialized details supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing market in general and The High Price Of Customer Satisfaction Case Study Analysis in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The High Price Of Customer Satisfaction Case Study Help has specific strengths that can be used to decrease the threats, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The High Price Of Customer Satisfaction Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to consider numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which might increase constraints for the company in implementing its development program. The weaknesses of The High Price Of Customer Satisfaction Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting The High Price Of Customer Satisfaction Case Study Analysis also, however the development might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually presented specific risks to The High Price Of Customer Satisfaction Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of The High Price Of Customer Satisfaction Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total revenues of The High Price Of Customer Satisfaction Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is quite effective in attracting a large number of consumers at a possible rate.
In addition to it, the second chart which reveals the annual development in the The High Price Of Customer Satisfaction Case Study Help overall possessions, reveals that the business is quite effective in adding value to its possessions through its earnings. The development in possessions shows that the overall worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis concerning the circulation of total profits of the business. 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 business sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the The High Price Of Customer Satisfaction Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books affect the overall company at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The High Price Of Customer Satisfaction Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the digital libraries on specific sites. The changing consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The High Price Of Customer Satisfaction Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The High Price Of Customer Satisfaction Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as The High Price Of Customer Satisfaction Case Study Analysis 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.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 business segments to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an immediate service to avoid the declining market growth. For that reason, introduction of digital publishing could show to be an immediate solution with low quantity of danger for the business. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to first gathers the information related to the customer need, the prospective markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a threat to the business's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
