Zivame Branding Options For An Online Lingerie Retailer Case Study Solution and Analysis
Introduction
Zivame Branding Options For An Online Lingerie Retailer Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing market in general and Zivame Branding Options For An Online Lingerie Retailer Case Study Help in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Zivame Branding Options For An Online Lingerie Retailer Case Study Solution has particular strengths that can be made use of to decrease the hazards, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Zivame Branding Options For An Online Lingerie Retailer Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the company to consider several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase restraints for the business in executing its development program. The weak points of Zivame Branding Options For An Online Lingerie Retailer Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Zivame Branding Options For An Online Lingerie Retailer Case Study Help as well, but the development could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned particular risks to Zivame Branding Options For An Online Lingerie Retailer Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Zivame Branding Options For An Online Lingerie Retailer Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies 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 consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the annual overall revenues of Zivame Branding Options For An Online Lingerie Retailer Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a big number of clients at a potential rate.
Together with it, the second chart which shows the annual development in the Zivame Branding Options For An Online Lingerie Retailer Case Study Analysis total properties, shows that the business is quite effective in adding value to its possessions through its incomes. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis concerning the distribution of total revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state 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 might be said that the total political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Zivame Branding Options For An Online Lingerie Retailer Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the general company at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices 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 consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Zivame Branding Options For An Online Lingerie Retailer Case Study Analysis consists of the issues of ecological neighborhoods over the use 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 needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Zivame Branding Options For An Online Lingerie Retailer 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 provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Zivame Branding Options For An Online Lingerie Retailer Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the decreasing market growth. The company could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the customer need, the potential markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a danger to the business's long term existence, however the circumstance can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
