Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Solution and Analysis
Intro
Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Solution in specific. These elements include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 important experience, technical resources and the abilities of the company could be utilized 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
Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Analysis has specific strengths that can be made use of to reduce the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position allows the business to consider several advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Help as well, but the growth could be restored by availing particular chances provided in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually posed particular risks to Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total incomes of Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the company is quite effective in drawing in a big number of clients at a potential price.
Along with it, the second graph which shows the annual development in the Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Help overall possessions, shows that the business is quite efficient in including worth to its assets through its incomes. The development in properties reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of overall revenues of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces affecting Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Help includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled 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 ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the digital libraries on specific websites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry 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 rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Leica Camera A Boutique Firm Faces A World Of Change 2 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate option to prevent the decreasing market growth. For that reason, intro of digital publishing could show to be an instant service with low amount of threat for the business. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information related to the customer need, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
