1366 Technologies Scaling The Venture Abridged Case Study Solution and Analysis
Introduction
1366 Technologies Scaling The Venture Abridged Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, 1366 Technologies Scaling The Venture Abridged Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue 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 Case Study Help has specific strengths that can be used to reduce the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of 1366 Technologies Scaling The Venture Abridged Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position permits the business to consider several development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which might increase restraints for the company in executing its advancement program. The weak points of 1366 Technologies Scaling The Venture Abridged Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining given that 2008, affecting 1366 Technologies Scaling The Venture Abridged Case Study Help as well, but the growth could be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has posed certain risks to 1366 Technologies Scaling The Venture Abridged Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of 1366 Technologies Scaling The Venture Abridged Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market in addition to existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. The overall financial performance of the business might be evaluated by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of 1366 Technologies Scaling The Venture Abridged Case Study Solution is growing and the company is rather effective in attracting a large number of customers at a prospective cost.
Together with it, the 2nd chart which reveals the yearly development in the 1366 Technologies Scaling The Venture Abridged Case Study Solution total properties, shows that the business is rather efficient in adding worth to its assets through its earnings. The growth in properties reveals that the overall value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of total earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the 1366 Technologies Scaling The Venture Abridged Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading useful materials and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the 1366 Technologies Scaling The Venture Abridged Case Study Analysis. However, the customer preferences are shifting towards digital publishing rather than the standard 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 development in the reading methods and so on. Enhancement of science and innovation together with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting 1366 Technologies Scaling The Venture Abridged Case Study Analysis includes the issues of environmental 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 utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the virtual libraries on certain sites. The changing customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the 1366 Technologies Scaling The Venture Abridged Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of 1366 Technologies Scaling The Venture Abridged Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
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 business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to avoid the decreasing industry development. Therefore, introduction of digital publishing could prove to be an immediate solution with low amount of danger for the business. However, the business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to initially collects the data related to the consumer demand, the possible markets, the government regulations and the information related to the competitors presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a hazard to the business's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The business might think about 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 brand-new markets.
