Landau Company Case Study Solution and Analysis
Landau Company Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing info and communication services. Major company sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its major products include books, regulars, online media, exhibitions, research study reports etc. Landau Company Case Study Analysis has become a specialized details supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Landau Company Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Landau Company Case Study Help has certain strengths that can be made use of to lower the hazards, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Landau Company Case Study Solution in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position allows the business to consider several development chances without any fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase restraints for the business in executing its advancement program. The weak points of Landau Company Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
The development of the publishing market is declining considering that 2008, affecting Landau Company Case Study Help as well, but the growth might be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented certain risks to Landau Company Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Landau Company Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular methods like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry along with existence of high competition increases the hazard of losing the client base.
Due to lack of data, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the yearly total revenues of Landau Company Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in attracting a large number of clients at a possible price.
In addition to it, the 2nd graph which reveals the annual growth in the Landau Company Case Study Analysis overall possessions, shows that the company is rather efficient in including value to its assets through its revenues. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the distribution of total earnings of the company. Major 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 might move towards other organisation sections with a prospective development to accomplish its future advancement objective.
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Landau Company Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Landau Company Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies connected to the import of books affect the total organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Landau Company Case Study Help. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Landau Company Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Landau Company Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 requires high quality documents at competitive rates.
CMP operates in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Landau Company Case Study Help 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 publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in numerous market segments, with a major focus on instructional publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Landau Company Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Landau Company Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its items 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 achieve its future advancement. As the preferences are shifting towards digital publishing and the business need an instant service to avoid the declining industry growth. Therefore, introduction of digital publishing might show to be an instant solution with low amount of danger for the company. Nevertheless, the business could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially collects the data related to the customer demand, the prospective markets, the federal government regulations and the information connected to the competitors provided in the market. After that, the business should choose one prospective segment for its initial offering. It must gather research study that how it could separate its digital publishing from the existing competitors' items. The actions above the company should go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Although, the growth of the publishing market is declining given that 2008, revealing a danger to the company's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.