The Lego Group 3 Case Study Solution and Analysis
The Lego Group 3 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and The Lego Group 3 Case Study Help in particular. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
The Lego Group 3 Case Study Analysis has certain strengths that can be utilized to decrease the threats, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Lego Group 3 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position permits the business to consider numerous advancement opportunities without any fear of raising fund externally.
Together with the strengths, the business has specific weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of The Lego Group 3 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company 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 specific growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing industry is decreasing because 2008, affecting The Lego Group 3 Case Study Solution also, however the growth could be restored by availing particular chances provided in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could 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 changing macro patterns in the market and increasing competition in the publishing market has actually posed certain hazards to The Lego Group 3 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of The Lego Group 3 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market along with existence of high competitors increases the risk of losing the consumer base.
The company has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. The general financial efficiency of the company might be examined by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of The Lego Group 3 Case Study Help is growing and the business is quite efficient in bring in a large number of customers at a potential price.
Together with it, the 2nd chart which shows the annual growth in the The Lego Group 3 Case Study Help total possessions, shows that the company is quite effective in adding value to its assets through its profits. The development in properties reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis regarding the circulation of overall revenues of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a prospective growth to achieve its future advancement objective.
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant 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 guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces impacting The Lego Group 3 Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the The Lego Group 3 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces affecting The Lego Group 3 Case Study Help consists of the issues of environmental 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 utilized while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the documents provided in the virtual libraries on particular sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Lego Group 3 Case Study Analysis include the providers of the paper for releasing documents. 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.
Haggling 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 market saturation, the buyers needs high quality files at competitive rates.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Lego Group 3 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an immediate option to prevent the decreasing market growth. For that reason, introduction of digital publishing might show to be an immediate solution with low amount of risk for the company. However, the business could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially collects the information connected to the customer need, the potential markets, the federal government regulations and the information related to the rivals presented in the market. After that, the company should decide one possible sector for its initial offering. It ought to collect research study that how it could separate its digital publishing from the existing competitors' products. After all the actions above the business must choose the preliminary offering. The company must go for the other markets if the preliminary offering shows a success. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining considering that 2008, revealing a risk to the business's long term presence, however the situation can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.