Lac Leman Festival A Case Study Solution and Analysis
Introduction
Lac Leman Festival A Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing info and interaction services. Significant company sectors of the company consist of; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibits, research study reports etc. Lac Leman Festival A Case Study Solution has ended up being a specialized information company and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Lac Leman Festival A Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lac Leman Festival A Case Study Analysis has certain strengths that can be made use of to minimize the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Lac Leman Festival A Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong monetary position enables the company to consider numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase restraints for the business in executing its development program. The weaknesses of Lac Leman Festival A Case Study Help are offered 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 highly relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Lac Leman Festival A Case Study Solution as well, however the development might be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented particular hazards to Lac Leman Festival A Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Lac Leman Festival A Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall incomes of Lac Leman Festival A Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite effective in drawing in a big number of customers at a potential price.
Together with it, the 2nd graph which shows the annual development in the Lac Leman Festival A Case Study Solution total properties, shows that the company is rather efficient in including value to its assets through its incomes. The development in possessions reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the distribution of total incomes of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be said that the overall political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Lac Leman Festival A Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Lac Leman Festival A Case Study Help consist of the providers of the paper for releasing files. 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 Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Lac Leman Festival A Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in different market sectors, with a significant concentrate on educational publications. CIP functions 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 might wean the market share of Lac Leman Festival A Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Lac Leman Festival A Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry growth. Intro of digital publishing might prove to be an immediate service with low amount of threat for the business. However, the company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data connected to the customer demand, the possible markets, the government policies and the information connected to the competitors presented in the market. After that, the business must decide one prospective section for its initial offering. It should gather research that how it could distinguish its digital publishing from the existing competitors' products. After all the actions above the business ought to go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
