The Role Of Customer Relationship Management In A Firms Customer Management Case Study Solution and Analysis
Introduction
The Role Of Customer Relationship Management In A Firms Customer Management Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing details and interaction services. Significant organisation sections of the company include; books, regulars, consultancy and distribution. The business has a vast product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. The Role Of Customer Relationship Management In A Firms Customer Management Case Study Analysis has actually become a specialized information provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, The Role Of Customer Relationship Management In A Firms Customer Management Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 used 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 Role Of Customer Relationship Management In A Firms Customer Management Case Study Solution has specific strengths that can be used to decrease the hazards, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Role Of Customer Relationship Management In A Firms Customer Management Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the company to consider numerous advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase constraints for the business in executing its advancement program. The weak points of The Role Of Customer Relationship Management In A Firms Customer Management Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, affecting The Role Of Customer Relationship Management In A Firms Customer Management Case Study Help too, however the development could be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific hazards to The Role Of Customer Relationship Management In A Firms Customer Management Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of The Role Of Customer Relationship Management In A Firms Customer Management Case Study Help 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 rivals can get a strong consumer base by utilizing particular techniques like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry in addition to existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total earnings of The Role Of Customer Relationship Management In A Firms Customer Management Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in bring in a big number of clients at a possible rate.
Along with it, the second graph which shows the annual growth in the The Role Of Customer Relationship Management In A Firms Customer Management Case Study Solution total possessions, shows that the company is rather effective in adding worth to its possessions through its incomes. The growth in properties shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the distribution of total profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces affecting The Role Of Customer Relationship Management In A Firms Customer Management Case Study Solution company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting The Role Of Customer Relationship Management In A Firms Customer Management Case Study Help consists of the concerns of ecological 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 should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the virtual libraries on particular websites. The altering consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Role Of Customer Relationship Management In A Firms Customer Management Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Role Of Customer Relationship Management In A Firms Customer Management Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in various market sections, with a major concentrate on instructional publications. CIP functions as a threat 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 marketplace share of The Role Of Customer Relationship Management In A Firms Customer Management Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as The Role Of Customer Relationship Management In A Firms Customer Management Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 service sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate option to prevent the decreasing market development. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first gathers the data related to the customer demand, the possible markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a hazard to the business's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
