Lennar Corporations Joint Venture Investments Case Study Solution and Analysis
Lennar Corporations Joint Venture Investments Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing information and communication services. Significant company segments of the business consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its major products include books, periodicals, online media, exhibitions, research study reports and so on. Lennar Corporations Joint Venture Investments Case Study Analysis has become a specialized info supplier and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and Lennar Corporations Joint Venture Investments Case Study Help in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Lennar Corporations Joint Venture Investments Case Study Analysis has particular strengths that can be made use of to decrease the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are offered 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 company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the company to think about several advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Lennar Corporations Joint Venture Investments Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing market is decreasing since 2008, impacting Lennar Corporations Joint Venture Investments Case Study Help as well, however the growth could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might 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.
The altering macro patterns in the market and increasing competition in the publishing industry has posed particular risks to Lennar Corporations Joint Venture Investments Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Lennar Corporations Joint Venture Investments Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the consumer base.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual overall profits of Lennar Corporations Joint Venture Investments Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is rather efficient in drawing in a large number of consumers at a prospective cost.
Along with it, the second graph which shows the annual growth in the Lennar Corporations Joint Venture Investments Case Study Solution total possessions, reveals that the company is rather efficient in including value to its properties through its incomes. The development in assets shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis relating to the distribution of total profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a prospective growth to attain its future development goal.
PESTEL analysis might be performed to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Lennar Corporations Joint Venture Investments Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Lennar Corporations Joint Venture Investments Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to 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 involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Lennar Corporations Joint Venture Investments Case Study Solution consist of the suppliers 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 large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
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. Significant rivals of Lennar Corporations Joint Venture Investments Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Lennar Corporations Joint Venture Investments Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining industry development. The business could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should initially collects the data related to the consumer need, the potential markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining given that 2008, revealing a hazard to the company's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.