The Financial Globalization Of Lenovo Case Study Solution and Analysis
Introduction
The Financial Globalization Of Lenovo Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details company and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and The Financial Globalization Of Lenovo Case Study Help in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Financial Globalization Of Lenovo Case Study Analysis has certain strengths that can be made use of to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Financial Globalization Of Lenovo Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong monetary position permits the business to think about a number of development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in executing its development program. The weaknesses of The Financial Globalization Of Lenovo Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting The Financial Globalization Of Lenovo Case Study Solution too, but the development could be restored by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has postured particular threats to The Financial Globalization Of Lenovo Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of The Financial Globalization Of Lenovo Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry together with presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. However, the total monetary performance of the company might be evaluated by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of The Financial Globalization Of Lenovo Case Study Help is growing and the company is quite efficient in drawing in a a great deal of customers at a prospective price.
Together with it, the second graph which reveals the yearly development in the The Financial Globalization Of Lenovo Case Study Solution overall properties, shows that the business is quite efficient in including value to its possessions through its revenues. The development in properties shows that the overall worth 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 distribution of overall revenues of the business. Huge part of the revenues 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 organisation sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting The Financial Globalization Of Lenovo Case Study Help organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the The Financial Globalization Of Lenovo Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the overall service at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation along with the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting The Financial Globalization Of Lenovo Case Study Analysis includes 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry 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. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Financial Globalization Of Lenovo Case Study Analysis consist of 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates 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. Significant competitors of The Financial Globalization Of Lenovo Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a major focus on academic 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 might wean the market share of The Financial Globalization Of Lenovo Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
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 company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the declining market development. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially gathers the data connected to the customer need, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. After that, the company should decide one possible segment for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the business need to opt for the initial offering. If the initial offering shows a success, the business should choose the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a threat to the company's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
