Lululemon Athletica Inc 5 Case Study Solution and Analysis
Introduction
Lululemon Athletica Inc 5 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing details and interaction services. Major service sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. Lululemon Athletica Inc 5 Case Study Analysis has actually become a specialized details provider and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Lululemon Athletica Inc 5 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Lululemon Athletica Inc 5 Case Study Analysis has specific strengths that can be used to lower the hazards, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Lululemon Athletica Inc 5 Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong monetary position allows the company to think about several development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Lululemon Athletica Inc 5 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, impacting Lululemon Athletica Inc 5 Case Study Solution as well, however the growth might be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured particular risks to Lululemon Athletica Inc 5 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Lululemon Athletica Inc 5 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly total profits of Lululemon Athletica Inc 5 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in drawing in a big number of clients at a possible cost.
Along with it, the 2nd graph which reveals the annual growth in the Lululemon Athletica Inc 5 Case Study Analysis total properties, shows that the business is quite effective in including value to its possessions through its profits. The growth in assets reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. 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 choices towards reading informative products etc. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the Lululemon Athletica Inc 5 Case Study Help. The customer preferences 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 customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Lululemon Athletica Inc 5 Case Study Help includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning 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 Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition 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, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Lululemon Athletica Inc 5 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market 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.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The business 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 Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a significant concentrate on instructional publications. CIP acts as a danger 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 Lululemon Athletica Inc 5 Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Lululemon Athletica Inc 5 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding 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: Introduce 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 product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand 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 rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the declining market development. For that reason, introduction of digital publishing might prove to be an immediate service with low amount of risk for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first gathers the data associated with the consumer need, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. After that, the company should choose one possible segment for its initial offering. It should collect research that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the company need to choose the preliminary offering. If the initial offering shows a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a risk to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
