Longs Jewelers Case Study Solution and Analysis
Longs Jewelers Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Longs Jewelers Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement 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 scenario? 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 business sustain its long term competitive position in future?
Longs Jewelers Case Study Solution has particular strengths that can be made use of to decrease the dangers, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Longs Jewelers Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position allows the company to think about several advancement chances without any fear of raising fund externally.
Along with the strengths, the business has particular weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of Longs Jewelers Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing market is declining since 2008, impacting Longs Jewelers Case Study Solution as well, however the development could be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has posed specific threats to Longs Jewelers Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Longs Jewelers Case Study Analysis due to the customer shift towards virtual libraries.
• The presence 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 acquire a strong consumer base by using certain strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the danger of losing the consumer base.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total profits of Longs Jewelers Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is rather effective in drawing in a large number of consumers at a prospective price.
In addition to it, the second chart which shows the yearly development in the Longs Jewelers Case Study Solution overall assets, reveals that the business is quite efficient in including worth to its properties through its revenues. The growth in assets shows that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis regarding the distribution of overall earnings of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a potential growth to achieve its future advancement objective.
PESTEL analysis could be carried out to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces impacting Longs Jewelers Case Study Help includes the issues 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 used while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the digital libraries on certain sites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Longs Jewelers Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Longs Jewelers Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market sectors, with a significant focus on academic publications. CIP functions as a threat 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 marketplace share of Longs Jewelers Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Longs Jewelers Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the business require an instant service to avoid the decreasing market growth. The company could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially collects the data related to the customer demand, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
The growth of the publishing industry is declining considering that 2008, revealing a danger to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.