Lehman Brothers Fall Case Study Solution and Analysis
Lehman Brothers Fall Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Lehman Brothers Fall Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised several 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 capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Lehman Brothers Fall Case Study Solution has specific strengths that can be utilized to lower the threats, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Lehman Brothers Fall Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position allows the company to think about a number of development opportunities without any fear of raising fund externally.
Along with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its advancement program. The weak points of Lehman Brothers Fall Case Study Analysis are offered as follows;
• Despite of being a science and innovation 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 needs to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing market is decreasing considering that 2008, affecting Lehman Brothers Fall Case Study Solution as well, but the growth might be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing market has actually postured certain risks to Lehman Brothers Fall Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Lehman Brothers Fall Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the hazard of losing the client base.
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 overall revenues of Lehman Brothers Fall Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is rather effective in bring in a big number of customers at a possible cost.
Together with it, the 2nd graph which reveals the annual development in the Lehman Brothers Fall Case Study Analysis total possessions, shows that the company is quite efficient in including value to its assets through its incomes. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis concerning the distribution of total revenues of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a potential growth to attain its future advancement goal.
PESTEL analysis might be conducted to discover the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces impacting Lehman Brothers Fall Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Lehman Brothers Fall Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the general business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful products etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of consumers of the Lehman Brothers Fall Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Lehman Brothers Fall Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Lehman Brothers Fall Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company 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 Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Lehman Brothers Fall Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate service to prevent the declining industry development. Therefore, introduction of digital publishing might show to be an instant solution with low amount of risk for the company. The company might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should first gathers the information connected to the consumer need, the prospective markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the company must decide one prospective section for its preliminary offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company should choose the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.