Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Solution and Analysis
Intro
Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Help has particular strengths that can be utilized to lower the risks, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong monetary position allows the business to think about several advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase constraints for the company in executing its advancement program. The weak points of Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing because 2008, impacting Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Solution as well, but the development could be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has positioned particular dangers to Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be calculated. The general financial performance of the business might be examined by utilizing the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis is growing and the business is quite efficient in bring in a a great deal of customers at a potential rate.
Along with it, the 2nd graph which reveals the yearly growth in the Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis total properties, reveals that the company is rather effective in including value to its properties through its profits. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis relating to the distribution of total incomes of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Help 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 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 a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks second and third in numerous market sections, with a significant concentrate on academic publications. CIP serves 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 Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Nomuras Global Growth Picking Up Pieces Of Lehman 3 Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an immediate option to prevent the declining market growth. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should first collects the information connected to the consumer need, the possible markets, the federal government policies and the data connected to the rivals presented in the market. After that, the business should decide one possible section for its preliminary offering. It should collect research study that how it might separate its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, revealing a danger to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
