Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution and Analysis
Introduction
Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 situation? Do the long important experience, technical resources and the abilities of the company could be made use of 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
Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Analysis has certain strengths that can be made use of to reduce the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the company to think about numerous development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weak points of Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution as well, however the growth could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned specific threats to Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall profits of Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is rather effective in attracting a big number of consumers at a prospective rate.
In addition to it, the second chart which shows the yearly development in the Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Help total assets, reveals that the business is rather effective in adding value to its assets through its incomes. The growth in properties shows that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the distribution of total profits of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered 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 government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies related to the import of books affect the general organisation at CPM. However, China's economic conditions are quite 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 conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the documents presented in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Solution consist of the suppliers of the paper for releasing documents. 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 Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Using Customer Relationship Management To Analyze The Lifetime Value Of A Customer Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an instant service to avoid the declining industry development. Intro of digital publishing could prove to be an instant 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.
Implementation
In order to present digital publishing in its item portfolio, the company needs to first gathers the data related to the consumer need, the potential markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term presence, however the circumstance can be controlled by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
