Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution and Analysis
Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing info and communication services. Significant organisation sectors of the business consist of; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. Collaborating With Customer Communities Lessons From The Lego Group Case Study Analysis has become a specialized details provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing market in basic and Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
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 abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution has particular strengths that can be utilized to lower the threats, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position permits the business to think about several development chances with no fear of raising fund externally.
Along with the strengths, the company has particular weak points which might increase restrictions for the business in executing its development program. The weak points of Collaborating With Customer Communities Lessons From The Lego Group Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion 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, impacting Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution too, but the growth might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing 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 minimize its reliance over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competition in the publishing industry has postured specific dangers to Collaborating With Customer Communities Lessons From The Lego Group Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Collaborating With Customer Communities Lessons From The Lego Group Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry in addition to existence of high competitors increases the danger of losing the consumer base.
Due to absence of information, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the yearly total revenues of Collaborating With Customer Communities Lessons From The Lego Group Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual 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 price.
Together with it, the 2nd graph which reveals the yearly development in the Collaborating With Customer Communities Lessons From The Lego Group Case Study Analysis overall properties, shows that the company is rather effective in including worth to its properties through its profits. The growth in assets reveals that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the distribution of total revenues of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a possible growth to achieve its future advancement goal.
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of customers of the Collaborating With Customer Communities Lessons From The Lego Group Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental forces impacting Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing market China. A quick 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 growth in the market tends to bring in new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry 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 competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 requires high quality files at competitive rates.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an immediate service to avoid the declining industry growth. Introduction of digital publishing could prove to be an immediate solution with low amount of threat for the company. The business might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should first gathers the data associated with the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the company needs to choose one prospective segment for its preliminary offering. It must collect research study that how it might differentiate its digital publishing from the existing rivals' products. The actions above the business ought to go for the preliminary offering. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing because 2008, revealing a threat to the company's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.