Lincoln Financial Meets The Financial Crisis Case Study Solution and Analysis
Introduction
Lincoln Financial Meets The Financial Crisis Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Lincoln Financial Meets The Financial Crisis Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns 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 capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lincoln Financial Meets The Financial Crisis Case Study Help has particular strengths that can be made use of to minimize the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Lincoln Financial Meets The Financial Crisis Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high value to its clients.
• Strong financial position enables the business to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase restrictions for the business in executing its development program. The weak points of Lincoln Financial Meets The Financial Crisis Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Lincoln Financial Meets The Financial Crisis Case Study Help as well, but the growth could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually positioned certain risks to Lincoln Financial Meets The Financial Crisis Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Lincoln Financial Meets The Financial Crisis Case Study Solution due to the customer shift towards virtual 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 rivals can get a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the danger of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly overall revenues of Lincoln Financial Meets The Financial Crisis Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is rather efficient in drawing in a large number of clients at a possible price.
Together with it, the second graph which reveals the annual growth in the Lincoln Financial Meets The Financial Crisis Case Study Help overall properties, reveals that the business is quite effective in including value to its assets through its earnings. The growth in properties shows that the overall value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the distribution of overall earnings of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Lincoln Financial Meets The Financial Crisis Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful materials etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Lincoln Financial Meets The Financial Crisis Case Study Solution. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Lincoln Financial Meets The Financial Crisis Case Study Analysis consists of the issues 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 must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the digital libraries on certain websites. The altering customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Lincoln Financial Meets The Financial Crisis Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Lincoln Financial Meets The Financial Crisis Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a significant concentrate on academic publications. CIP serves as a risk 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 Lincoln Financial Meets The Financial Crisis Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially collects the information related to the consumer need, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a hazard to the business's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
