Lg Electronics Canada Inc The Watch Phone Case Study Solution and Analysis
Intro
Lg Electronics Canada Inc The Watch Phone Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing details and communication services. Significant business sectors of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Lg Electronics Canada Inc The Watch Phone Case Study Help has become a specialized details provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and Lg Electronics Canada Inc The Watch Phone Case Study Help in specific. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lg Electronics Canada Inc The Watch Phone Case Study Analysis has particular strengths that can be utilized to minimize the risks, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Lg Electronics Canada Inc The Watch Phone Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the business to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its advancement program. The weak points of Lg Electronics Canada Inc The Watch Phone Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Lg Electronics Canada Inc The Watch Phone Case Study Solution as well, however the development could be revived by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented specific risks to Lg Electronics Canada Inc The Watch Phone Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Lg Electronics Canada Inc The Watch Phone Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market along with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The total monetary efficiency of the business might be analyzed by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Lg Electronics Canada Inc The Watch Phone Case Study Solution is growing and the company is rather effective in attracting a a great deal of customers at a prospective cost.
In addition to it, the second graph which shows the annual growth in the Lg Electronics Canada Inc The Watch Phone Case Study Analysis overall assets, reveals that the company is rather effective in adding value to its possessions through its profits. The development in assets shows that the total worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis regarding the distribution of total incomes 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 could move towards other organisation segments with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Lg Electronics Canada Inc The Watch Phone Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative materials etc. China has the greatest population in the world with a high population development, revealing the increasing variety of customers of the Lg Electronics Canada Inc The Watch Phone Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Lg Electronics Canada Inc The Watch Phone Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Lg Electronics Canada Inc The Watch Phone Case Study Help include the suppliers of the paper for releasing files. 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 Purchaser.
Bargaining 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 buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Lg Electronics Canada Inc The Watch Phone Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant service to prevent the declining industry growth. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to first collects the information related to the customer demand, the prospective markets, the government policies and the data 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 way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the company's long term presence, but the circumstance can be managed by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
