Three Year Planning At Li Fung Limited Case Study Solution and Analysis
Intro
Three Year Planning At Li Fung Limited Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing details and interaction services. Significant service sectors of the business include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant items include books, periodicals, online media, exhibits, research reports etc. Three Year Planning At Li Fung Limited Case Study Analysis has actually become a specialized info supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in general and Three Year Planning At Li Fung Limited Case Study Help in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement 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 valuable experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Three Year Planning At Li Fung Limited Case Study Analysis has specific strengths that can be used to lower the risks, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Three Year Planning At Li Fung Limited Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the company to consider numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which could increase constraints for the business in executing its advancement program. The weaknesses of Three Year Planning At Li Fung Limited Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Three Year Planning At Li Fung Limited Case Study Solution as well, however the development could be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented certain hazards to Three Year Planning At Li Fung Limited Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Three Year Planning At Li Fung Limited Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly total incomes of Three Year Planning At Li Fung Limited Case Study Solution during 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 efficient in attracting a big number of clients at a possible cost.
Along with it, the 2nd chart which reveals the annual growth in the Three Year Planning At Li Fung Limited Case Study Help overall assets, shows that the company is rather effective in including value to its properties through its revenues. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis relating to the distribution of overall incomes of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces affecting Three Year Planning At Li Fung Limited Case Study Solution company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Three Year Planning At Li Fung Limited Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the overall service at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading helpful products and so on. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the Three Year Planning At Li Fung Limited Case Study Solution. However, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might lower the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Three Year Planning At Li Fung Limited Case Study Solution consists of the concerns of environmental 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 guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence 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 likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Three Year Planning At Li Fung Limited Case Study Solution include the providers of the paper for releasing documents. 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 industry 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 files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Three Year Planning At Li Fung Limited Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks third and second in different market segments, with a significant focus on instructional publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Three Year Planning At Li Fung Limited Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing industry development. For that reason, intro of digital publishing might prove to be an instant service with low amount of danger for the company. Nevertheless, the business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should first gathers the information related to the customer need, the potential markets, the federal government policies and the information associated with the rivals provided in the market. After that, the business ought to choose one potential segment for its preliminary offering. It needs to gather research study that how it might separate its digital publishing from the existing rivals' products. The actions above the business need to go for the initial offering. If the preliminary offering shows a success, the business needs to choose the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a danger to the business's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
