Assignment Lucent Technologies Case Study Solution and Analysis
Introduction
Assignment Lucent Technologies Case Study Help 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 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 Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and Assignment Lucent Technologies Case Study Solution in particular. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Assignment Lucent Technologies Case Study Help has specific strengths that can be made use of to lower the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Assignment Lucent Technologies Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position enables the company to consider numerous development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase restraints for the company in executing its development program. The weak points of Assignment Lucent Technologies Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Assignment Lucent Technologies Case Study Analysis as well, however the growth could be restored by availing particular 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 recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has positioned particular dangers to Assignment Lucent Technologies Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Assignment Lucent Technologies Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger 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 products, etc.
• Entrance of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be calculated. The overall financial efficiency of the company could be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Assignment Lucent Technologies Case Study Analysis is growing and the company is rather efficient in bring in a large number of clients at a potential rate.
Along with it, the 2nd graph which reveals the yearly development in the Assignment Lucent Technologies Case Study Analysis total assets, reveals that the business is quite effective in including value to its properties through its revenues. The growth in properties shows that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to 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 company might move towards other service segments with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies 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 soon.
Environmental.
Environmental forces affecting Assignment Lucent Technologies Case Study Help consists of the issues of ecological neighborhoods over the use 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 should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Assignment Lucent Technologies Case Study Analysis consist of 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Assignment Lucent Technologies Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in numerous market sectors, with a major concentrate on educational publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Assignment Lucent Technologies Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Assignment Lucent Technologies Case Study Solution and CIP. It is also one of the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the decreasing industry development. The company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first collects the information related to the customer need, the prospective markets, the federal government guidelines 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
The growth of the publishing market is decreasing because 2008, revealing a threat to the company's long term presence, however the scenario can be controlled by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
