1366 Technologies Scaling The Venture Abridged 2 Case Study Solution and Analysis
1366 Technologies Scaling The Venture Abridged 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• 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 important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
1366 Technologies Scaling The Venture Abridged 2 Case Study Help has specific strengths that can be utilized to minimize the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position permits the company to think about a number of advancement chances with no fear of raising fund externally.
Together with the strengths, the company has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of 1366 Technologies Scaling The Venture Abridged 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is declining since 2008, impacting 1366 Technologies Scaling The Venture Abridged 2 Case Study Help too, however the growth could be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing 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 reliance over Chinese markets by using its large funds.
The altering macro trends in the market and increasing competition in the publishing industry has actually posed particular hazards to 1366 Technologies Scaling The Venture Abridged 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of 1366 Technologies Scaling The Venture Abridged 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the hazard of losing the customer base.
Due to absence of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total profits of 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is rather efficient in bring in a big number of clients at a potential cost.
Along with it, the second graph which reveals the yearly development in the 1366 Technologies Scaling The Venture Abridged 2 Case Study Analysis total properties, reveals that the company is rather efficient in adding worth to its assets through its profits. The growth in properties reveals that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis relating to the distribution of total profits of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a prospective growth to achieve its future development goal.
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the general company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental forces impacting 1366 Technologies Scaling The Venture Abridged 2 Case Study Help includes the concerns of environmental neighborhoods 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 utilized while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive competition 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. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 purchasers requires high quality documents at competitive costs.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of 1366 Technologies Scaling The Venture Abridged 2 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. Founded in the exact same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in various market segments, with a major focus on academic publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of 1366 Technologies Scaling The Venture Abridged 2 Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as 1366 Technologies Scaling The Venture Abridged 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company require an immediate service to avoid the decreasing industry development. The business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information related to the customer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing market is decreasing since 2008, showing a hazard to the business's long term presence, however the scenario can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.