Log Of America Inc Case Study Solution and Analysis
Log Of America Inc Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Log Of America Inc Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns 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 capabilities 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?
Log Of America Inc Case Study Help has specific strengths that can be made use of to reduce the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Log Of America Inc Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position allows the company to think about numerous development opportunities with no fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Log Of America Inc Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is decreasing since 2008, affecting Log Of America Inc Case Study Solution too, however the development could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has postured certain dangers to Log Of America Inc Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Log Of America Inc Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the customer base.
The business has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. The total financial efficiency of the business might be analyzed by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Log Of America Inc Case Study Solution is growing and the business is rather efficient in drawing in a a great deal of customers at a prospective cost.
Together with it, the 2nd chart which reveals the yearly growth in the Log Of America Inc Case Study Analysis overall assets, shows that the business is rather effective in adding worth to its possessions through its revenues. The development in possessions reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis relating to the distribution of overall revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential development to achieve its future advancement goal.
PESTEL analysis might be conducted to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could 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 monitored and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Log Of America Inc Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the general service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental forces affecting Log Of America Inc Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Log Of America Inc Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 market saturation, the buyers needs high quality files at competitive rates.
CMP runs in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Log Of America Inc Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in different market segments, with a major concentrate on academic publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Log Of America Inc Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Log Of America Inc Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate service to avoid the decreasing industry development. Intro of digital publishing could show to be an immediate option with low quantity of danger for the company. The business might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially collects the information associated with the customer need, the potential markets, the federal government regulations and the information related to the rivals presented in the market. After that, the business needs to decide one potential segment for its initial offering. It must collect research study that how it could differentiate its digital publishing from the existing rivals' items. After all the steps above the business must go for the preliminary offering. The company ought to go for the other markets if the initial offering shows a success. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining since 2008, showing a danger to the business's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.