Landau Company Case Study Solution and Analysis
Intro
Landau Company Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing info and interaction services. Significant service sections of the company consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports and so on. Landau Company Case Study Analysis has become a specialized info company and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Landau Company Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised a number of concerns 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 business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Landau Company Case Study Help has specific strengths that can be utilized to minimize the threats, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Landau Company Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its clients.
• Strong monetary position enables the business to consider numerous development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Landau Company Case Study Help are provided 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 particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting Landau Company Case Study Help as well, but the development might be revived by availing specific chances presented in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually presented certain threats to Landau Company Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Landau Company Case Study Solution due to the consumer shift towards digital libraries.
• The existence 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 acquire a strong consumer base by using certain methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total earnings of Landau Company Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in bring in a big number of clients at a prospective rate.
Along with it, the second graph which shows the yearly development in the Landau Company Case Study Solution overall assets, shows that the company is rather effective in including value to its properties through its incomes. The growth in possessions shows that the overall value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of total earnings of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Landau Company Case Study Help organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Landau Company Case Study Solution consists of the issues of environmental 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 utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Landau Company Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 marketplace saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Landau Company Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in different market segments, with a major concentrate on instructional publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Landau Company Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to prevent the declining market growth. Therefore, intro of digital publishing might prove to be an immediate option with low amount of danger for the business. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first gathers the data connected to the customer demand, the possible markets, the federal government regulations and the information related to the rivals presented in the market. After that, the business must choose one prospective sector for its initial offering. It needs to gather research that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business must go for the initial offering. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a danger to the company's long term existence, however the scenario can be controlled by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
