To Increase Sales Change The Way You Sell 2 Case Study Solution and Analysis
Introduction
To Increase Sales Change The Way You Sell 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing information and communication services. Major company segments of the company consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. To Increase Sales Change The Way You Sell 2 Case Study Help has actually ended up being a specialized information service provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in basic and To Increase Sales Change The Way You Sell 2 Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
To Increase Sales Change The Way You Sell 2 Case Study Analysis has particular strengths that can be utilized to decrease the risks, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of To Increase Sales Change The Way You Sell 2 Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position enables the business to think about a number of development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of To Increase Sales Change The Way You Sell 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting To Increase Sales Change The Way You Sell 2 Case Study Help too, but the development might be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has postured particular risks to To Increase Sales Change The Way You Sell 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of To Increase Sales Change The Way You Sell 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals 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 utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. However, the general monetary performance of the business could be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of To Increase Sales Change The Way You Sell 2 Case Study Help is growing and the business is rather effective in attracting a a great deal of consumers at a potential cost.
In addition to it, the second chart which reveals the annual growth in the To Increase Sales Change The Way You Sell 2 Case Study Solution overall assets, shows that the business is quite effective in including worth to its properties through its earnings. The development in possessions shows that the total worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis concerning the circulation of overall incomes of the company. Major part of the incomes 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 organisation segments with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces impacting To Increase Sales Change The Way You Sell 2 Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the To Increase Sales Change The Way You Sell 2 Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative products etc. China has the greatest population on the planet with a high population growth, revealing the increasing variety of consumers of the To Increase Sales Change The Way You Sell 2 Case Study Solution. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting To Increase Sales Change The Way You Sell 2 Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the To Increase Sales Change The Way You Sell 2 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of To Increase Sales Change The Way You Sell 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 existing market scenario.
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 terms of business scale. It is likewise among the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible 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 current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company 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 internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the business require an instant option to prevent the declining industry development. Therefore, intro of digital publishing might prove to be an instant solution with low quantity of threat for the business. However, the business might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first gathers the information related to the customer demand, the prospective markets, the government policies and the data related to the competitors provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, showing a hazard to the business's long term existence, however the situation can be controlled by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
