Lego Case Study Solution and Analysis
Introduction
Lego Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing details and interaction services. Major business sectors of the business include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports and so on. Lego Case Study Analysis has actually become a specialized information provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Lego Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change 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 circumstance? Do the long important experience, technical resources and the capabilities 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 Case Study Help has particular strengths that can be utilized to lower the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Lego Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position permits the company to consider numerous development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of Lego Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Lego Case Study Analysis as well, but the development might be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed particular dangers to Lego Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Lego Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry along with existence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP could not be calculated. The general monetary efficiency of the business might be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Lego Case Study Analysis is growing and the business is quite efficient in drawing in a a great deal of customers at a potential price.
In addition to it, the second chart which shows the yearly growth in the Lego Case Study Analysis overall possessions, shows that the company is quite efficient in adding worth to its assets through its earnings. The growth in assets reveals that the overall value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the circulation of total revenues of the business. Major 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 business could move towards other service sections with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Lego Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. Together with it, the economic policies connected to the import of books affect the total organisation at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Lego Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal 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 marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Lego Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Lego Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Lego Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing 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: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an instant solution to prevent the declining market development. Therefore, introduction of digital publishing could show to be an instant solution with low quantity of danger for the business. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to first collects the data related to the customer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a danger to the company's long term presence, but the situation can be managed by thinking about a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
