The Procter Gamble Company Case Study Solution and Analysis
Intro
The Procter Gamble Company Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, The Procter Gamble Company Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 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 Procter Gamble Company Case Study Solution has certain strengths that can be made use of to decrease the dangers, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Procter Gamble Company Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position enables the company to think about numerous development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase restrictions for the business in implementing its development program. The weak points of The Procter Gamble Company Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, affecting The Procter Gamble Company Case Study Analysis as well, but the growth might be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain dangers to The Procter Gamble Company Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Procter Gamble Company Case Study Solution due to the customer shift towards digital 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 rivals can acquire a strong customer base by using specific strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total revenues of The Procter Gamble Company Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather effective in bring in a large number of customers at a potential cost.
Along with it, the 2nd graph which shows the yearly development in the The Procter Gamble Company Case Study Solution overall possessions, shows that the company is quite effective in adding worth to its possessions through its revenues. The growth in properties reveals that the total worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the distribution of overall revenues of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the The Procter Gamble Company Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies related to the import of books impact the general organisation at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting The Procter Gamble Company Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger 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 brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market 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 also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Procter Gamble Company Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Procter Gamble Company Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business require an instant option to prevent the decreasing industry growth. Introduction of digital publishing might prove to be an instant solution with low quantity of risk for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information associated with the consumer demand, the possible markets, the federal government policies and the data related to the competitors provided in the market. After that, the company needs to decide one prospective section for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the business ought to opt for the preliminary offering. The company should go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a danger to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
