Lehman Brothers Fall Case Study Solution and Analysis
Introduction
Lehman Brothers Fall Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing details and communication services. Significant organisation sectors of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major products consist of books, regulars, online media, exhibits, research study reports etc. Lehman Brothers Fall Case Study Analysis has become a specialized information provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Lehman Brothers Fall Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• 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 business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lehman Brothers Fall Case Study Analysis has certain strengths that can be used to decrease the risks, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Lehman Brothers Fall Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong financial position enables the business to think about numerous advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase constraints for the business in executing its development program. The weak points of Lehman Brothers Fall Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional 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 specific growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Lehman Brothers Fall Case Study Analysis as well, however the growth might be restored by availing specific chances provided in the market. The market chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually positioned specific threats to Lehman Brothers Fall Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Lehman Brothers Fall Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be computed. The overall financial performance of the company could be analyzed by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Lehman Brothers Fall Case Study Analysis is growing and the business is quite efficient in drawing in a a great deal of clients at a prospective cost.
Along with it, the 2nd graph which reveals the annual growth in the Lehman Brothers Fall Case Study Help overall possessions, reveals that the company is quite efficient in including value to its assets through its revenues. The growth in properties reveals that the overall value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis relating to the distribution of overall revenues of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Lehman Brothers Fall Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the total organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Lehman Brothers Fall Case Study Help includes the issues of environmental communities 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 hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the documents presented in the digital libraries on certain sites. The changing customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Lehman Brothers Fall Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence 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 Lehman Brothers Fall Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Lehman Brothers Fall Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 company segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an instant service to prevent the declining market growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first gathers the data associated with the customer demand, the possible markets, the government regulations and the data related to the rivals provided in the market. After that, the business must decide one prospective sector for its preliminary offering. It must collect research that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business need to go for the preliminary offering. If the initial offering shows a success, the company must go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
