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Lego Group Case Study Solution and Analysis


Introduction

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

Vital Problems

CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and Lego Group Case Study Analysis in particular. These elements consist of;

• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
Executive Summary
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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be used 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 Analysis has certain strengths that can be made use of to minimize the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;

• The long term experience of Lego Group Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position allows the business to consider a number of advancement opportunities without any worry of raising fund externally.

Weak points

Along with the strengths, the business has particular weak points which might increase restrictions for the company in implementing its development program. The weak points of Lego Group Case Study Help are offered as follows;

• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing market is declining because 2008, affecting Lego Group Case Study Solution too, however the development could be restored by availing particular chances provided in the market. The market chances for CMP consist of;

• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.

Threats

The changing macro trends in the market and increasing competitors in the publishing market has presented certain risks to Lego Group Case Study Analysis consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries could result in declining market share of Lego Group Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods 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 danger of losing the consumer base.

Monetary Analysis.
Swot Analysis
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly total revenues of Lego Group Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a large number of customers at a potential cost.

Along with it, the 2nd graph which shows the yearly growth in the Lego Group Case Study Help total assets, reveals that the business is quite efficient in including worth to its possessions through its incomes. The growth in assets shows that the total worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).

Another monetary analysis of the company utilizing the given data might be the analysis regarding the distribution of overall revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a potential growth to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis might be carried out to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Lego Group Case Study Solution company are high. The government policies regarding the publishing sector are also increasing with the passage of time.

Affordable.

Financial forces affecting the publishing sector in general and the Lego Group Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the total business at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's choices towards checking out informative materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Lego Group Case Study Analysis. Nevertheless, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer choices.

Technological.

Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Lego Group Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.

Industry Analysis (Porter's 5 Forces Model).

Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.

Hazard of New Entrants.

Risks of 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. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.

Threat of Alternative.

Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the industry.

Competitive Competition.

Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.

Bargaining Power of Provider.

The significant providers of the Lego Group Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall 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 existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.

Competitors Analysis.

CMP runs in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Lego Group Case Study Help include;.

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

Chemical Industry Press (CIP).

CIP acts as a threat for CMP as it could 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 easily in the present market circumstance.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of possible 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 threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value 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 new one can lead the business to lose need of its items in the market.

Recommendations

With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. Intro of digital publishing could show to be an immediate solution with low quantity of danger for the business. The business might likewise consider the expansion program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its item portfolio, the company must initially collects the information associated with the customer demand, the possible markets, the government policies and the data associated with the rivals provided in the market. After that, the company should decide one prospective segment for its initial offering. It must collect research study that how it could separate its digital publishing from the existing competitors' products. After all the steps above the business must opt for the preliminary offering. If the preliminary offering shows a success, the company should opt for the other markets. In this method the company would have the ability to implement its digital publishing program.

Conclusion

The growth of the publishing industry is declining given that 2008, showing a hazard to the company's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.

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