Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Solution and Analysis
Introduction
Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Analysis in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be utilized 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
Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Analysis has certain strengths that can be utilized to reduce the hazards, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to think about numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Help as well, but the growth could be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has postured certain dangers to Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly total incomes of Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite effective in drawing in a big number of consumers at a possible cost.
Together with it, the second chart which reveals the annual growth in the Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Analysis overall assets, reveals that the business is quite effective in adding value to its assets through its revenues. The growth in properties shows that the total value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the circulation of total incomes of the business. Major 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 company might move towards other company segments with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Help business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Help in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books impact the general company at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the digital libraries on particular websites. The altering customer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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 likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Toyota Motor Corporation Building The Lexus Brand In Europe Case Study Help and CIP. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the decreasing market growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of danger for the company. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should initially gathers the data related to the consumer demand, the potential markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a risk to the company's long term presence, but the situation can be controlled by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
