Lehman Brothers And Repo 105 Case Study Solution and Analysis
Lehman Brothers And Repo 105 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing market in general and Lehman Brothers And Repo 105 Case Study Help in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Lehman Brothers And Repo 105 Case Study Help has specific strengths that can be used to lower the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Lehman Brothers And Repo 105 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position enables the business to consider several advancement chances with no fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Lehman Brothers And Repo 105 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is decreasing because 2008, affecting Lehman Brothers And Repo 105 Case Study Help also, however the growth could be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has postured specific risks to Lehman Brothers And Repo 105 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Lehman Brothers And Repo 105 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the client base.
The business has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be calculated. The overall monetary performance of the company could be examined by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Lehman Brothers And Repo 105 Case Study Analysis is growing and the company is rather effective in attracting a large number of consumers at a prospective rate.
Together with it, the second graph which reveals the yearly growth in the Lehman Brothers And Repo 105 Case Study Help overall possessions, reveals that the business is quite efficient in including value to its properties through its profits. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the circulation of total profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a possible development to attain its future advancement goal.
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Lehman Brothers And Repo 105 Case Study Help includes the concerns of ecological 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 damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the virtual libraries on certain websites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Lehman Brothers And Repo 105 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
CMP runs in a highly 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 Lehman Brothers And Repo 105 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a major focus on instructional publications. CIP functions 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 could wean the market share of Lehman Brothers And Repo 105 Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its items in the market.
As the choices are moving towards digital publishing and the company require an immediate service to avoid the decreasing industry development. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the customer need, the possible markets, the government policies and the information connected to the competitors presented in the market. After that, the business needs to decide one potential segment for its preliminary offering. It should collect research that how it might distinguish its digital publishing from the existing competitors' products. The steps above the business must go for the initial offering. If the preliminary offering proves a success, the business should go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Although, the development of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.