Lululemon Athletica 4 Case Study Solution and Analysis
Intro
Lululemon Athletica 4 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing details and interaction services. Major service sectors of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports and so on. Lululemon Athletica 4 Case Study Solution has actually become a specialized details service provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Lululemon Athletica 4 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lululemon Athletica 4 Case Study Analysis has certain strengths that can be utilized to decrease the risks, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Lululemon Athletica 4 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong financial position permits the company to consider numerous development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restraints for the business in executing its development program. The weak points of Lululemon Athletica 4 Case Study Solution are provided 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 highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining given that 2008, impacting Lululemon Athletica 4 Case Study Solution as well, but the development could be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also 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 minimize its dependence over Chinese markets by utilizing its vast funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed particular hazards to Lululemon Athletica 4 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Lululemon Athletica 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry together with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. Nevertheless, the total financial performance of the business might be examined by utilizing the graphs given up the case Appendices. It might be evaluated from the Appendix III that the yearly total earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Lululemon Athletica 4 Case Study Analysis is growing and the company is quite effective in bring in a a great deal of clients at a potential price.
Together with it, the 2nd chart which shows the annual development in the Lululemon Athletica 4 Case Study Solution total possessions, reveals that the company is quite effective in adding value to its properties through its profits. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis regarding the circulation of total profits of the company. 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 business might move towards other company segments with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Lululemon Athletica 4 Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Lululemon Athletica 4 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 costs.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Lululemon Athletica 4 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market segments, with a major focus on instructional publications. CIP acts as a risk 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 Lululemon Athletica 4 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 same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors 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 business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an instant solution to avoid the decreasing industry development. Introduction of digital publishing might prove to be an immediate solution with low amount of danger for the business. The business could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company should initially gathers the data associated with the consumer demand, the potential markets, the federal government policies and the data associated with the rivals presented in the market. After that, the company should choose one prospective section for its initial offering. It needs to gather research study that how it might differentiate its digital publishing from the existing rivals' products. The actions above the company should go for the preliminary offering. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a hazard to the business's long term existence, but the situation can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
