Lending Club Case Study Solution and Analysis
Intro
Lending Club Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing info and interaction services. Major service sections of the business consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports etc. Lending Club Case Study Analysis has ended up being a specialized details company and a big detailed Science and Innovation 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 a successful publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and Lending Club Case Study Help in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lending Club Case Study Solution has certain strengths that can be used to decrease the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Lending Club Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong monetary position enables the company to think about numerous development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of Lending Club Case Study Analysis are provided 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 should propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Lending Club Case Study Analysis too, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has postured specific dangers to Lending Club Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Lending Club Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the total monetary efficiency of the business could be analyzed by using the charts given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Lending Club Case Study Help is growing and the company is rather effective in bring in a a great deal of clients at a possible price.
Together with it, the 2nd chart which shows the yearly development in the Lending Club Case Study Help total possessions, reveals that the company is quite effective in including value to its assets through its incomes. The growth in assets shows that the overall value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis concerning the distribution of overall earnings of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, 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 Lending Club Case Study Solution business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative materials and so on. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Lending Club Case Study Analysis. However, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Lending Club Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into 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 Five Forces Design could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the published documents is the files presented in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Lending Club Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Lending Club Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a significant focus on academic publications. CIP serves 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 Lending Club Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an instant service to prevent the decreasing industry growth. For that reason, intro of digital publishing might prove to be an immediate solution with low amount of risk for the company. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the data associated with the consumer need, the potential markets, the government policies and the data connected to the competitors presented in the market. After that, the company must decide one prospective segment for its preliminary offering. It ought to collect research that how it might distinguish its digital publishing from the existing competitors' products. The actions above the company ought to go for the initial offering. If the preliminary offering proves a success, the business must choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a hazard to the business's long term presence, but the situation can be controlled by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
