Lac Leman Festival A Case Study Solution and Analysis
Lac Leman Festival A Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing info and communication services. Significant service sections of the business include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. Lac Leman Festival A Case Study Analysis has ended up being a specialized info provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and Lac Leman Festival A Case Study Solution in specific. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 circumstance? 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 business sustain its long term competitive position in future?
Lac Leman Festival A Case Study Solution has specific strengths that can be used to lower the threats, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Lac Leman Festival A Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the business to think about a number of development chances without any fear of raising fund externally.
Along with the strengths, the business has particular weak points which might increase restrictions for the company in executing its advancement program. The weak points of Lac Leman Festival A Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods 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 expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is decreasing given that 2008, impacting Lac Leman Festival A Case Study Help too, but the development could be restored by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
The altering macro patterns in the market and increasing competitors in the publishing market has presented certain dangers to Lac Leman Festival A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Lac Leman Festival A Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the consumer base.
Due to lack of information, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual total earnings of Lac Leman Festival A Case Study Analysis 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 company is rather effective in bring in a big number of clients at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the Lac Leman Festival A Case Study Analysis overall possessions, reveals that the company is rather efficient in adding worth to its possessions through its earnings. The development in properties shows that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis relating to the distribution of total earnings of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a potential development to achieve its future advancement objective.
PESTEL analysis could be conducted to find out the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting Lac Leman Festival A Case Study Analysis company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Lac Leman Festival A Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the total business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer choices.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental forces impacting Lac Leman Festival A Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. However, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the hazard of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Lac Leman Festival A Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Lac Leman Festival A Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Lac Leman Festival A Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business need an instant solution to prevent the decreasing industry development. The business could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should initially collects the information connected to the consumer demand, the potential markets, the federal government policies and the data connected to the rivals presented in the market. After that, the business must choose one prospective segment for its initial offering. It must collect research that how it might differentiate its digital publishing from the existing rivals' items. After all the steps above the business should go for the preliminary offering. The business ought to go for the other markets if the initial offering shows a success. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing industry is decreasing since 2008, showing a risk to the business's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.