Leases Case Study Solution and Analysis
Introduction
Leases Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering information, processing info and communication services. Major organisation segments of the company consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its significant products include books, regulars, online media, exhibits, research reports etc. Leases Case Study Solution has become a specialized details service provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Leases Case Study Solution in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Leases Case Study Analysis has particular strengths that can be made use of to minimize the hazards, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Leases Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the business to consider numerous development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Leases Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Leases Case Study Solution as well, but the development might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has presented specific risks to Leases Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Leases Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual total profits of Leases Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is rather efficient in attracting a large number of consumers at a potential price.
In addition to it, the 2nd chart which shows the annual development in the Leases Case Study Solution total assets, reveals that the business is rather effective in adding value to its properties through its earnings. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the distribution of overall earnings of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Leases Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Leases Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the total service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful materials etc. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the Leases Case Study Solution. However, 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 customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Leases Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market 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 rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Leases Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Leases Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 organisation sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the declining industry development. Therefore, introduction of digital publishing might show to be an immediate service with low quantity of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the customer demand, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a risk to the company's long term existence, but the situation can be managed by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
