Log Of America Inc Case Study Solution and Analysis
Intro
Log Of America Inc Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing details and communication services. Major business sectors of the company include; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant products include books, regulars, online media, exhibitions, research reports and so on. Log Of America Inc Case Study Solution has ended up being a specialized info provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Log Of America Inc Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
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 utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Log Of America Inc Case Study Analysis has certain strengths that can be made use of to reduce the dangers, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Log Of America Inc Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong financial position enables the company to consider numerous advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Log Of America Inc Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Log Of America Inc Case Study Solution as well, but the development could be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned particular hazards to Log Of America Inc Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Log Of America Inc Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly total revenues of Log Of America Inc Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a big number of customers at a possible cost.
Along with it, the second graph which shows the annual development in the Log Of America Inc Case Study Solution total properties, shows that the business is rather efficient in including value to its assets through its earnings. The growth in assets shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis relating to the distribution of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Log Of America Inc Case Study Analysis service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out informative products etc. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Log Of America Inc Case Study Help. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Log Of America Inc Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Log Of America Inc Case Study Analysis consist of the suppliers of the paper for publishing 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Log Of America Inc Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
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 new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate option to prevent the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the information related to the customer need, the possible markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, but the scenario can be managed by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
