Assignment Lucent Technologies Case Study Solution and Analysis
Assignment Lucent Technologies Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering details, processing info and interaction services. Significant organisation sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant items include books, regulars, online media, exhibitions, research reports etc. Assignment Lucent Technologies Case Study Solution has ended up being a specialized info company and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Assignment Lucent Technologies Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions 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 development unceasingly? How could the company sustain its long term competitive position in future?
Assignment Lucent Technologies Case Study Solution has certain strengths that can be used to decrease the threats, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Assignment Lucent Technologies Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position enables the business to consider a number of advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restraints for the business in executing its advancement program. The weaknesses of Assignment Lucent Technologies Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining since 2008, affecting Assignment Lucent Technologies Case Study Help also, but the growth might be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
The changing macro patterns in the market and increasing competition in the publishing market has actually postured specific threats to Assignment Lucent Technologies Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Assignment Lucent Technologies Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the threat of losing the customer base.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual overall earnings of Assignment Lucent Technologies Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in attracting a big number of consumers at a potential cost.
Along with it, the second graph which shows the annual growth in the Assignment Lucent Technologies Case Study Solution overall possessions, reveals that the company is quite effective in including worth to its assets through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered data could be the analysis concerning the distribution of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a prospective growth to attain its future development objective.
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting Assignment Lucent Technologies Case Study Solution service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Assignment Lucent Technologies Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the general service at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Assignment Lucent Technologies Case Study Solution includes the issues of environmental communities 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 ought to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the files provided in the digital libraries on particular sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Assignment Lucent Technologies Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier 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 buyers needs high quality documents at competitive prices.
CMP runs in an extremely competitive market 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. Major rivals of Assignment Lucent Technologies Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competition 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 items in the market.
As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the decreasing market growth. The business might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the customer need, the potential markets, the government policies and the data related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.