Zenith Bank The Marketing Of An Initial Public Offering Case Study Solution and Analysis
Introduction
Zenith Bank The Marketing Of An Initial Public Offering Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing information and communication services. Major business sectors of the company consist of; books, regulars, consultancy and distribution. The business has a large item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. Zenith Bank The Marketing Of An Initial Public Offering Case Study Solution has actually ended up being a specialized information provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Zenith Bank The Marketing Of An Initial Public Offering Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Zenith Bank The Marketing Of An Initial Public Offering Case Study Help has particular strengths that can be used to decrease the hazards, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Zenith Bank The Marketing Of An Initial Public Offering Case Study Solution in the publishing market i.e. 60 years allows the company to offer 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.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Zenith Bank The Marketing Of An Initial Public Offering Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company 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 needs to propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Zenith Bank The Marketing Of An Initial Public Offering Case Study Help as well, however the growth could be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain threats to Zenith Bank The Marketing Of An Initial Public Offering Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Zenith Bank The Marketing Of An Initial Public Offering Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly overall earnings of Zenith Bank The Marketing Of An Initial Public Offering Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a big number of customers at a prospective cost.
Along with it, the 2nd chart which reveals the yearly development in the Zenith Bank The Marketing Of An Initial Public Offering Case Study Solution overall possessions, shows that the business is rather effective in adding worth to its properties through its revenues. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the circulation of overall earnings of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative products etc. China has the highest population worldwide with a high population growth, showing the increasing variety of consumers of the Zenith Bank The Marketing Of An Initial Public Offering Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs 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 methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Zenith Bank The Marketing Of An Initial Public Offering Case Study Analysis consists of the issues of ecological 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 ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry 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 marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Zenith Bank The Marketing Of An Initial Public Offering Case Study Analysis include 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 purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Zenith Bank The Marketing Of An Initial Public Offering Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus 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 company need an instant option to avoid the decreasing industry development. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to first collects the data related to the customer demand, the possible markets, the government regulations and the information related to the competitors presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a hazard to the company's long term presence, but the circumstance can be controlled by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
