1366 Technologies Scaling The Venture Abridged 2 Case Study Solution and Analysis
Intro
1366 Technologies Scaling The Venture Abridged 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, 1366 Technologies Scaling The Venture Abridged 2 Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several concerns 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 made use of 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
1366 Technologies Scaling The Venture Abridged 2 Case Study Analysis has particular strengths that can be used to lower the threats, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of 1366 Technologies Scaling The Venture Abridged 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position allows the company to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining since 2008, affecting 1366 Technologies Scaling The Venture Abridged 2 Case Study Help as well, however the growth might be restored by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has positioned specific threats to 1366 Technologies Scaling The Venture Abridged 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could 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 presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The overall monetary efficiency of the business might be examined by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution is growing and the business is rather efficient in drawing in a a great deal of customers at a potential rate.
Together with it, the second graph which shows the yearly development in the 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution overall possessions, shows that the company is quite efficient in adding worth to its assets through its profits. The growth in properties reveals that the total worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered information might be the analysis regarding 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 displayed in the Case Appendix V. The company might move towards other company segments with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the 1366 Technologies Scaling The Venture Abridged 2 Case Study Help. However, the customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution includes the concerns of environmental communities over the usage 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 must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the 1366 Technologies Scaling The Venture Abridged 2 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry 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 documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest 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. Established in the very same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a significant concentrate on instructional publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of 1366 Technologies Scaling The Venture Abridged 2 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as 1366 Technologies Scaling The Venture Abridged 2 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing market growth. The business might likewise consider 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 collects the information connected to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the company should choose one prospective section for its initial offering. It should gather research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the company need to go for the preliminary offering. If the preliminary offering shows a success, the business should choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a risk to the company's long term existence, but the circumstance can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
