Longs Jewelers Case Study Solution and Analysis
Introduction
Longs Jewelers Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and Longs Jewelers Case Study Help in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Longs Jewelers Case Study Solution has specific strengths that can be used to minimize the risks, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Longs Jewelers Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong monetary position enables the business to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Longs Jewelers Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Longs Jewelers Case Study Solution as well, however the growth could be revived by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed particular hazards to Longs Jewelers Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Longs Jewelers Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market along with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be computed. Nevertheless, the general monetary performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Longs Jewelers Case Study Solution is growing and the business is quite efficient in drawing in a large number of customers at a possible cost.
Together with it, the 2nd graph which shows the yearly development in the Longs Jewelers Case Study Solution overall assets, reveals that the business is rather effective in adding worth to its properties through its earnings. The development in possessions reveals that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis concerning the circulation of total revenues of the business. 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 company could move towards other company segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Longs Jewelers Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the files provided in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Longs Jewelers Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Longs Jewelers Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very 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 gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current 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 business sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the declining market development. Introduction of digital publishing could show to be an instant service with low amount of threat for the business. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first collects the data related to the consumer demand, the possible markets, the government policies and the data related to the competitors provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
