Lowes Company Inc Case Study Solution and Analysis
Lowes Company Inc Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Lowes Company Inc Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in general and CMP in specific. These elements include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? 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 company sustain its long term competitive position in future?
Lowes Company Inc Case Study Help has particular strengths that can be utilized to minimize the threats, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Lowes Company Inc Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position enables the business to think about numerous advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has specific weak points which might increase restrictions for the business in executing its advancement program. The weak points of Lowes Company Inc Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
The development of the publishing industry is declining considering that 2008, affecting Lowes Company Inc Case Study Analysis as well, however the growth could be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain risks to Lowes Company Inc Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Lowes Company Inc Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market along with existence of high competitors increases the threat of losing the client base.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly total earnings of Lowes Company Inc Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in drawing in a large number of consumers at a possible cost.
Along with it, the 2nd graph which reveals the annual growth in the Lowes Company Inc Case Study Analysis total properties, reveals that the business is rather effective in including value to its assets through its profits. The growth in properties shows that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the distribution of overall incomes of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a possible development to accomplish its future advancement objective.
PESTEL analysis might be conducted to learn the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces affecting Lowes Company Inc Case Study Solution company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates 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 reading informative products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Lowes Company Inc Case Study Analysis. The customer preferences 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 changing customer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental forces affecting Lowes Company Inc Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents presented in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Lowes Company Inc Case Study Help consist of the suppliers of the paper for releasing files. 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.
Bargaining 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 marketplace saturation, the buyers requires high quality files at competitive costs.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Lowes Company Inc Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
As the choices are shifting towards digital publishing and the business require an instant solution to avoid the declining industry growth. The business might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information connected to the consumer demand, the potential markets, the government policies and the information related to the rivals provided in the market. After that, the business ought to choose one possible section for its preliminary offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the company must opt for the initial offering. If the preliminary offering shows a success, the business should choose the other markets. In this way the company would be able to execute its digital publishing program.
The development of the publishing market is decreasing given that 2008, showing a hazard to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.