Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution and Analysis
Introduction
Collaborating With Customer Communities Lessons From The Lego Group Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Collaborating With Customer Communities Lessons From The Lego Group Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Collaborating With Customer Communities Lessons From The Lego Group Case Study Help has specific strengths that can be used to decrease the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Collaborating With Customer Communities Lessons From The Lego Group Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position enables the company to consider a number of development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Collaborating With Customer Communities Lessons From The Lego Group Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Collaborating With Customer Communities Lessons From The Lego Group Case Study Help as well, however the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business could likewise 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 minimize its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain threats to Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution due to the consumer shift towards digital 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 acquire a strong consumer base by using particular strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly total profits of Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is rather efficient in drawing in a big number of customers at a potential cost.
Together with it, the 2nd chart which shows the annual development in the Collaborating With Customer Communities Lessons From The Lego Group Case Study Help total possessions, shows that the company is rather efficient in including worth to its properties through its profits. The growth in possessions shows that the overall worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data could be the analysis regarding the circulation of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. 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 federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the economic policies associated with the import of books affect the general service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out helpful products etc. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the Collaborating With Customer Communities Lessons From The Lego Group Case Study Solution. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Collaborating With Customer Communities Lessons From The Lego Group Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract 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.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the files presented in the digital libraries on certain sites. The altering consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Collaborating With Customer Communities Lessons From The Lego Group Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Collaborating With Customer Communities Lessons From The Lego Group Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sections, with a major concentrate on instructional publications. CIP serves as a danger 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 market share of Collaborating With Customer Communities Lessons From The Lego Group Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Collaborating With Customer Communities Lessons From The Lego Group Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the decreasing market growth. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first gathers the data related to the consumer demand, the prospective markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a risk to the company's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
