Volcom Building An Authentic Brand 2 Case Study Solution and Analysis
Introduction
Volcom Building An Authentic Brand 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing details and interaction services. Major service sectors of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major items consist of books, periodicals, online media, exhibits, research reports and so on. Volcom Building An Authentic Brand 2 Case Study Analysis has ended up being a specialized info supplier and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Volcom Building An Authentic Brand 2 Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions 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 abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Volcom Building An Authentic Brand 2 Case Study Analysis has particular strengths that can be made use of to lower the dangers, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Volcom Building An Authentic Brand 2 Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which could increase restraints for the business in executing its advancement program. The weaknesses of Volcom Building An Authentic Brand 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting Volcom Building An Authentic Brand 2 Case Study Solution as well, but the development could be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The company might likewise 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 growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has positioned particular hazards to Volcom Building An Authentic Brand 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Volcom Building An Authentic Brand 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the annual total incomes of Volcom Building An Authentic Brand 2 Case Study Solution during the duration 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 big number of consumers at a possible cost.
Along with it, the second graph which shows the yearly development in the Volcom Building An Authentic Brand 2 Case Study Help total assets, reveals that the business is quite effective in including worth to its possessions through its revenues. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis regarding the circulation of total incomes of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Volcom Building An Authentic Brand 2 Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market. Together with it, the financial policies related to the import of books impact the overall company at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing could lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Volcom Building An Authentic Brand 2 Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to 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 Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Volcom Building An Authentic Brand 2 Case Study Help 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 provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Volcom Building An Authentic Brand 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sections, with a major focus on academic 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 market share of Volcom Building An Authentic Brand 2 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Volcom Building An Authentic Brand 2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an instant option to avoid the declining market growth. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the data connected to the consumer need, the prospective markets, the federal government policies and the data associated with the competitors presented in the market. After that, the company should choose one prospective section for its preliminary offering. It needs to collect research study that how it might separate its digital publishing from the existing competitors' products. The steps above the company must go for the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a threat to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
