The Lego Group Publish Or Protect Case Study Solution and Analysis
Introduction
The Lego Group Publish Or Protect Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing details and communication services. Significant service sections of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. The Lego Group Publish Or Protect Case Study Analysis has ended up being a specialized info provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, The Lego Group Publish Or Protect Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring specific difficulties to the publishing industry 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 technology.
The transformation 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 important experience, technical resources and the capabilities 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 Lego Group Publish Or Protect Case Study Analysis has particular strengths that can be utilized to decrease the dangers, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The Lego Group Publish Or Protect Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position permits the business to think about a number of development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which might increase restraints for the company in implementing its development program. The weaknesses of The Lego Group Publish Or Protect Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting The Lego Group Publish Or Protect Case Study Solution as well, but the development could be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured specific dangers to The Lego Group Publish Or Protect Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of The Lego Group Publish Or Protect Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP might not be computed. Nevertheless, the general financial efficiency of the business might be examined by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of The Lego Group Publish Or Protect Case Study Help is growing and the company is quite efficient in attracting a large number of customers at a prospective price.
Together with it, the 2nd graph which shows the yearly development in the The Lego Group Publish Or Protect Case Study Help overall possessions, shows that the business is rather effective in adding worth to its possessions through its profits. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the distribution of total incomes of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting The Lego Group Publish Or Protect Case Study Analysis company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Lego Group Publish Or Protect Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Lego Group Publish Or Protect Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Lego Group Publish Or Protect Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a significant concentrate on instructional publications. CIP functions 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 The Lego Group Publish Or Protect Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as The Lego Group Publish Or Protect Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition 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.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the declining market development. Introduction of digital publishing could show to be an instant solution with low amount of threat for the business. Nevertheless, the business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must initially gathers the data connected to the customer demand, the prospective markets, the government policies and the data related to the competitors presented in the market. After that, the company needs to choose one possible section for its initial offering. It must gather research that how it could separate its digital publishing from the existing rivals' items. The steps above the business should go for the preliminary offering. If the initial offering proves a success, the business needs to choose the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
