Logoplaste Global Growing Challenges Case Study Solution and Analysis
Introduction
Logoplaste Global Growing Challenges Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and Logoplaste Global Growing Challenges Case Study Analysis in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Logoplaste Global Growing Challenges Case Study Solution has particular strengths that can be utilized to reduce the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Logoplaste Global Growing Challenges Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position permits the business to think about a number of development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restraints for the company in executing its development program. The weaknesses of Logoplaste Global Growing Challenges Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Logoplaste Global Growing Challenges Case Study Solution as well, however the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular threats to Logoplaste Global Growing Challenges Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Logoplaste Global Growing Challenges Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be determined. Nevertheless, the total monetary efficiency of the company could be evaluated by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Logoplaste Global Growing Challenges Case Study Analysis is growing and the company is rather effective in attracting a large number of clients at a prospective price.
In addition to it, the second graph which shows the annual development in the Logoplaste Global Growing Challenges Case Study Analysis total assets, shows that the business is rather effective in adding value to its possessions through its earnings. The development in possessions shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of total profits 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 business could move towards other company sections with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Logoplaste Global Growing Challenges Case Study Help 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. Together with it, the financial policies connected to the import of books affect the overall organisation at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology together with the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Logoplaste Global Growing Challenges Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Logoplaste Global Growing Challenges Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Logoplaste Global Growing Challenges Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market sections, with a major focus on instructional publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Logoplaste Global Growing Challenges Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective 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 current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business need an immediate service to prevent the decreasing industry development. Therefore, introduction of digital publishing might prove to be an immediate option with low amount of threat for the company. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should initially collects the information related to the customer demand, the potential markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a threat to the company's long term existence, however the circumstance can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
