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Lego Group Case Study Solution and Analysis


Introduction

Lego Group Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.

Critical Problems

Although, Lego Group Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in particular. These elements consist of;

• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
Executive Summary
The improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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


Lego Group Case Study Solution has specific strengths that can be used to reduce the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;

• The long term experience of Lego Group Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the business to think about a number of advancement opportunities without any worry of raising fund externally.

Weak points

In addition to the strengths, the business has particular weak points which might increase restraints for the business in executing its development program. The weak points of Lego Group Case Study Solution are given as follows;

• Despite of being a science and technology publishing company, 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 must propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing industry is decreasing given that 2008, affecting Lego Group Case Study Solution as well, however the development could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;

• The company 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 lower its reliance over Chinese markets by utilizing its huge funds.

Threats

The altering macro patterns in the market and increasing competitors in the publishing market has postured certain hazards to Lego Group Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Lego Group Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competitors increases the danger of losing the client base.

Financial Analysis.
Swot Analysis
Due to absence of information, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total incomes of Lego Group Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is rather effective in attracting a big number of clients at a prospective cost.

Together with it, the second graph which shows the annual growth in the Lego Group Case Study Solution overall assets, shows that the business is rather effective in including worth to its properties through its incomes. The development in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).

Another monetary analysis of the business utilizing the offered data might be the analysis regarding the circulation of total revenues of the business. 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 company might move towards other service sections with a prospective growth to attain its future development goal.

PESTEL Analysis

PESTEL analysis might be performed to learn the different external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces impacting Lego Group Case Study Help business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in basic and the Lego Group Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the general organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.

Social and Demographical.

Social and demographical forces include the population development, the customer's choices towards reading informative materials and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Lego Group Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer choices.

Technological.

Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces impacting Lego Group Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.

Legal.

Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's 5 Forces Model).

Porter's Five Forces Design could be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.

Threat of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.

Threat of Alternative.

Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the danger of alternative for the industry.

Competitive Rivalry.

Competitive competition in the publishing industry 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, new entrants are likewise participating in the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The major providers of the Lego Group 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 total bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Haggling power of purchaser 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 requires high quality documents at competitive prices.

Competitors Analysis.

CMP operates in a highly competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Lego Group Case Study Help include;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a risk 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 easily in the existing market situation.

Posts and telecommunication Press (PTP).

It was likewise established in the very same duration as Lego Group Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its products in the market.

Suggestions

As the preferences are moving towards digital publishing and the company need an immediate option to prevent the declining industry development. The business might likewise consider the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its item portfolio, the business ought to initially collects the data associated with the consumer need, the prospective markets, the government regulations and the information connected to the competitors provided in the market. After that, the company ought to decide one prospective section for its preliminary offering. It should collect research that how it might distinguish its digital publishing from the existing rivals' products. After all the steps above the business ought to opt for the initial offering. If the preliminary offering proves a success, the business should opt for the other markets. In this way the company would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing market is decreasing since 2008, showing a hazard to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.

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