Wheaties Reinvigorating An Iconic Brand B Case Study Solution and Analysis
Introduction
Wheaties Reinvigorating An Iconic Brand B Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing information and interaction services. Significant business sections of the business include; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports and so on. Wheaties Reinvigorating An Iconic Brand B Case Study Help has actually become a specialized information company and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Wheaties Reinvigorating An Iconic Brand B Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Wheaties Reinvigorating An Iconic Brand B Case Study Help has particular strengths that can be made use of to minimize the hazards, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Wheaties Reinvigorating An Iconic Brand B Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position enables the business to consider several development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase constraints for the company in implementing its development program. The weaknesses of Wheaties Reinvigorating An Iconic Brand B Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Wheaties Reinvigorating An Iconic Brand B Case Study Analysis also, however the development might be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using 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 reliance over Chinese markets by using its huge financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned specific hazards to Wheaties Reinvigorating An Iconic Brand B Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Wheaties Reinvigorating An Iconic Brand B Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market along with existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly total earnings of Wheaties Reinvigorating An Iconic Brand B Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is quite effective in bring in a big number of customers at a potential cost.
Together with it, the second graph which reveals the yearly growth in the Wheaties Reinvigorating An Iconic Brand B Case Study Analysis total possessions, shows that the company is quite efficient in adding worth to its possessions through its earnings. The development in assets reveals that the overall value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis regarding the distribution of total incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP 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 integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology along with the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Wheaties Reinvigorating An Iconic Brand B Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-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 presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the virtual libraries on particular sites. The altering customer choices towards digital knowing increase the danger of replacement 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, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Wheaties Reinvigorating An Iconic Brand B Case Study Analysis include the providers of the paper for publishing 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.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Wheaties Reinvigorating An Iconic Brand B Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Wheaties Reinvigorating An Iconic Brand B Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry development. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially collects the data related to the customer demand, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a threat to the business's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
