Tower Of London Marketing Management Case Study Solution and Analysis
Intro
Tower Of London Marketing Management Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Tower Of London Marketing Management Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Tower Of London Marketing Management Case Study Solution has particular strengths that can be utilized to minimize the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Tower Of London Marketing Management Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position enables the business to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of Tower Of London Marketing Management Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business 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 ought to propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Tower Of London Marketing Management Case Study Analysis too, but the development might be restored by availing certain chances presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has positioned specific threats to Tower Of London Marketing Management Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Tower Of London Marketing Management Case Study Help due to the customer shift towards virtual libraries.
• The existence 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 consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly overall incomes of Tower Of London Marketing Management Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is rather effective in bring in a large number of customers at a prospective cost.
Together with it, the 2nd chart which shows the annual growth in the Tower Of London Marketing Management Case Study Analysis overall properties, shows that the business is rather efficient in adding value to its assets through its revenues. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis regarding the circulation of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Tower Of London Marketing Management Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the general service at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology along with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Tower Of London Marketing Management Case Study Help consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the virtual libraries on certain sites. The altering customer choices towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Tower Of London Marketing Management Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Tower Of London Marketing Management Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Tower Of London Marketing Management Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present 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 focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining market growth. The company could 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 company should initially collects the information associated with the customer need, the possible markets, the federal government regulations and the data related to the rivals provided in the market. After that, the business must choose one possible segment for its preliminary offering. It must gather research that how it could separate its digital publishing from the existing competitors' items. The steps above the company must go for the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a threat to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
