Lebanon Gasket Company Case Study Solution and Analysis
Intro
Lebanon Gasket Company Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; gathering information, processing information and interaction services. Major company sections of the business include; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports and so on. Lebanon Gasket Company Case Study Solution has become a specialized details supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and Lebanon Gasket Company Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lebanon Gasket Company Case Study Solution has specific strengths that can be used to lower the hazards, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Lebanon Gasket Company Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position enables the business to think about numerous development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase restraints for the business in implementing its advancement program. The weak points of Lebanon Gasket Company Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, affecting Lebanon Gasket Company Case Study Help as well, however the growth could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned particular hazards to Lebanon Gasket Company Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Lebanon Gasket Company Case Study Solution due to the consumer 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 rivals can acquire a strong customer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual overall earnings of Lebanon Gasket Company Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in bring in a big number of customers at a prospective price.
Together with it, the second chart which shows the annual development in the Lebanon Gasket Company Case Study Analysis total assets, reveals that the company is rather effective in including worth to its assets through its earnings. The growth in assets shows that the total worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis concerning the circulation of total profits 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 company sections with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful materials etc. China has the highest population worldwide with a high population development, revealing the increasing number of customers of the Lebanon Gasket Company Case Study Help. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Lebanon Gasket Company Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should 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 approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Lebanon Gasket Company Case Study Analysis consist of the providers of the paper for releasing documents. 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 Buyer.
Haggling 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 market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Lebanon Gasket Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a significant concentrate on academic publications. CIP functions as a risk 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 Lebanon Gasket Company Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Lebanon Gasket Company Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual 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 impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to first collects the information related to the customer demand, the possible markets, the government regulations and the data related to the rivals provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a risk to the business's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
