Lululemon Athletica Inc 5 Case Study Solution and Analysis
Lululemon Athletica Inc 5 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing info and communication services. Significant service sections of the business consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major products consist of books, regulars, online media, exhibits, research reports and so on. Lululemon Athletica Inc 5 Case Study Analysis has become a specialized information supplier and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Lululemon Athletica Inc 5 Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 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 Inc 5 Case Study Help has specific strengths that can be utilized to decrease the risks, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Lululemon Athletica Inc 5 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position allows the company to think about a number of advancement chances without any worry of raising fund externally.
Together with the strengths, the business has specific weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Lululemon Athletica Inc 5 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
The growth of the publishing industry is decreasing because 2008, impacting Lululemon Athletica Inc 5 Case Study Help as well, but the development might be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client 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 huge financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured particular dangers to Lululemon Athletica Inc 5 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Lululemon Athletica Inc 5 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the hazard of losing the client base.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total revenues of Lululemon Athletica Inc 5 Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in attracting a large number of clients at a potential cost.
Together with it, the second chart which reveals the yearly growth in the Lululemon Athletica Inc 5 Case Study Help total possessions, shows that the company is rather effective in adding worth to its properties through its incomes. The development in assets reveals that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis relating to the circulation of overall profits of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a potential growth to achieve its future advancement goal.
PESTEL analysis could be conducted to find out the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Lululemon Athletica Inc 5 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall company at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Lululemon Athletica Inc 5 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Lululemon Athletica Inc 5 Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Lululemon Athletica Inc 5 Case Study Help consist of;.
• 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 might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Lululemon Athletica Inc 5 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company require an instant option to avoid the declining market development. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the consumer demand, the possible markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing since 2008, showing a hazard to the business's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.