The Seven Questions Of Marketing Strategy 2 Case Study Solution and Analysis
Introduction
The Seven Questions Of Marketing Strategy 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and The Seven Questions Of Marketing Strategy 2 Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business could be used 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 Seven Questions Of Marketing Strategy 2 Case Study Analysis has certain strengths that can be made use of to minimize the risks, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Seven Questions Of Marketing Strategy 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position allows the company to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of The Seven Questions Of Marketing Strategy 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting The Seven Questions Of Marketing Strategy 2 Case Study Help as well, however the development could be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using 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 lower its dependence over Chinese markets by using its large funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has postured certain dangers to The Seven Questions Of Marketing Strategy 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Seven Questions Of Marketing Strategy 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be determined. Nevertheless, the general financial efficiency of the business could be evaluated by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of The Seven Questions Of Marketing Strategy 2 Case Study Help is growing and the company is quite effective in attracting a a great deal of consumers at a prospective price.
In addition to it, the second graph which reveals the annual growth in the The Seven Questions Of Marketing Strategy 2 Case Study Solution total assets, shows that the company is quite efficient in including worth to its possessions through its earnings. The development in assets reveals that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the distribution of overall profits of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the The Seven Questions Of Marketing Strategy 2 Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting 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 choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting The Seven Questions Of Marketing Strategy 2 Case Study Solution consists of the issues of environmental 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 utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the virtual libraries on certain sites. The changing customer choices towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Seven Questions Of Marketing Strategy 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Seven Questions Of Marketing Strategy 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in various market sectors, with a significant focus on instructional publications. CIP serves 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 marketplace share of The Seven Questions Of Marketing Strategy 2 Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
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 demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry development. Introduction of digital publishing might show to be an immediate option with low quantity of risk for the company. Nevertheless, the company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first gathers the data related to the consumer demand, the possible markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a risk to the company's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
