Lululemon Athletica 4 Case Study Solution and Analysis
Lululemon Athletica 4 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and communication services. Major company segments of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports and so on. Lululemon Athletica 4 Case Study Solution has ended up being a specialized details supplier and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and Lululemon Athletica 4 Case Study Solution in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Lululemon Athletica 4 Case Study Analysis has particular strengths that can be used to decrease the threats, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Lululemon Athletica 4 Case Study Help in the publishing industry i.e. 60 years permits the company to supply 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.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong monetary position enables the business to consider several advancement chances without any worry of raising fund externally.
Along with the strengths, the business has particular weak points which might increase constraints for the business in executing its development program. The weak points of Lululemon Athletica 4 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business 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 needs to propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
The development of the publishing industry is decreasing given that 2008, impacting Lululemon Athletica 4 Case Study Help as well, but the growth might be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned certain dangers to Lululemon Athletica 4 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Lululemon Athletica 4 Case Study Solution due to the consumer shift towards virtual 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 rivals can gain a strong consumer base by using specific strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the industry along with presence of high competitors increases the hazard of losing the client base.
The company has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be computed. The general financial efficiency of the company could be analyzed by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Lululemon Athletica 4 Case Study Solution is growing and the business is rather efficient in attracting a a great deal of clients at a potential price.
Together with it, the second graph which reveals the yearly development in the Lululemon Athletica 4 Case Study Analysis total properties, reveals that the business is rather effective in including worth to its properties through its incomes. The growth in assets shows that the overall worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of total profits of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a possible development to attain its future development objective.
PESTEL analysis might be performed to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Lululemon Athletica 4 Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the financial policies connected to the import of books impact the total company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative products and so on. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Lululemon Athletica 4 Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Lululemon Athletica 4 Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files presented in the virtual libraries on certain websites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive rivalry in the publishing market is high. The existence 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. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Lululemon Athletica 4 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 needs high quality documents at competitive costs.
CMP runs in an extremely competitive industry with the existence of large number of rivals. 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 Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business need an immediate service to prevent the declining market growth. The business could also think about 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 information associated with the consumer need, the potential markets, the government regulations and the information related to the competitors provided in the market. After that, the company ought to choose one possible segment for its initial offering. It ought to collect research study that how it could separate its digital publishing from the existing rivals' items. The actions above the company should go for the initial offering. If the preliminary offering shows a success, the business ought to opt for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the growth of the publishing market is decreasing because 2008, revealing a threat to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.