Lennar Corporations Joint Venture Investments Case Study Solution and Analysis
Introduction
Lennar Corporations Joint Venture Investments Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing info and interaction services. Significant organisation sections of the company consist of; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. Lennar Corporations Joint Venture Investments Case Study Help has ended up being a specialized info service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Lennar Corporations Joint Venture Investments Case Study Solution in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company 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
Lennar Corporations Joint Venture Investments Case Study Solution has specific strengths that can be used to minimize the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Lennar Corporations Joint Venture Investments Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong monetary position permits the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of Lennar Corporations Joint Venture Investments Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Lennar Corporations Joint Venture Investments Case Study Solution also, but the growth could be revived by availing particular chances provided in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned particular dangers to Lennar Corporations Joint Venture Investments Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Lennar Corporations Joint Venture Investments Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. The general monetary performance of the company might be examined by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Lennar Corporations Joint Venture Investments Case Study Help is growing and the business is quite effective in bring in a a great deal of consumers at a potential rate.
Along with it, the second graph which shows the yearly development in the Lennar Corporations Joint Venture Investments Case Study Help overall possessions, reveals that the company is rather effective in including value to its assets through its incomes. The development in assets reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the provided information could be the analysis regarding the circulation of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Lennar Corporations Joint Venture Investments Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs 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.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Lennar Corporations Joint Venture Investments Case Study Solution includes the concerns of environmental communities over the use 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Lennar Corporations Joint Venture Investments Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Lennar Corporations Joint Venture Investments Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors 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 products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant solution to prevent the declining industry development. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially gathers the information connected to the consumer demand, the possible markets, the government policies and the data associated with the competitors presented in the market. After that, the company must choose one prospective sector for its initial offering. It ought to gather research that how it might distinguish its digital publishing from the existing competitors' products. The actions above the business need to go for the initial offering. If the initial offering shows a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a threat to the business's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
