Livelihood Advancement Business School Case Study Solution and Analysis
Intro
Livelihood Advancement Business School Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and Livelihood Advancement Business School Case Study Solution in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change 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 important experience, technical resources and the capabilities of the company 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
Livelihood Advancement Business School Case Study Help has certain strengths that can be utilized to minimize the risks, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Livelihood Advancement Business School Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong financial position permits the company to think about numerous development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Livelihood Advancement Business School Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business 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 ought to propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Livelihood Advancement Business School Case Study Help as well, but the development might be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has presented certain risks to Livelihood Advancement Business School Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Livelihood Advancement Business School Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the annual overall profits of Livelihood Advancement Business School Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a big number of customers at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the Livelihood Advancement Business School Case Study Analysis total possessions, shows that the business is quite efficient in adding value to its assets through its revenues. The development in properties shows that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis relating to the distribution of total earnings of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the general political forces impacting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful materials etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Livelihood Advancement Business School Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Livelihood Advancement Business School Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed 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. 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 authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the documents provided in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Livelihood Advancement Business School Case Study Solution include the providers of the paper for publishing 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 Purchaser.
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 market saturation, the buyers requires high quality documents at competitive costs.
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. Significant rivals of Livelihood Advancement Business School Case Study Help include;.
• 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 might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 regards to business scale. It is also among the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining industry development. Introduction of digital publishing might show to be an immediate service with low quantity of danger for the company. However, the company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must initially collects the information related to the consumer need, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a threat to the company's long term presence, but the circumstance can be managed by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
