Lamont Golf Club What Next Case Study Solution and Analysis
Lamont Golf Club What Next Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in basic and Lamont Golf Club What Next Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Lamont Golf Club What Next Case Study Solution has specific strengths that can be made use of to minimize the risks, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Lamont Golf Club What Next Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position permits the company to consider several development chances without any fear of raising fund externally.
Together with the strengths, the company has specific weak points which might increase constraints for the company in implementing its development program. The weak points of Lamont Golf Club What Next Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
The development of the publishing market is declining considering that 2008, impacting Lamont Golf Club What Next Case Study Solution as well, however the growth could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has presented certain dangers to Lamont Golf Club What Next Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Lamont Golf Club What Next Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger 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.
• Entrance of brand-new publishing firms in the market in addition to existence of high competition increases the risk of losing the customer base.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total incomes of Lamont Golf Club What Next Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a large number of consumers at a potential cost.
In addition to it, the second chart which shows the yearly development in the Lamont Golf Club What Next Case Study Help overall properties, reveals that the business is rather effective in including value to its assets through its earnings. The growth in properties reveals that the total worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the provided information could be the analysis concerning the circulation of overall revenues of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a potential development to attain its future advancement objective.
PESTEL analysis might be performed to discover the different external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out useful materials etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the Lamont Golf Club What Next Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting Lamont Golf Club What Next Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the virtual libraries on specific websites. The altering customer preferences towards digital learning increase the threat of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Lamont Golf Club What Next Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 buyers needs high quality files at competitive rates.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Lamont Golf Club What Next Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business require an immediate service to prevent the declining market growth. For that reason, introduction of digital publishing might show to be an immediate service with low quantity of threat for the company. The business might 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 needs to initially collects the data associated with the consumer demand, the prospective markets, the government regulations and the information related to the competitors provided in the market. After that, the company ought to choose one potential segment for its preliminary offering. It should gather research study that how it could distinguish its digital publishing from the existing rivals' items. The steps above the company need to go for the preliminary offering. If the initial offering shows a success, the business must choose the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, revealing a hazard to the company's long term presence, however the situation can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.