1366 Technologies Scaling The Venture Case Study Solution and Analysis
1366 Technologies Scaling The Venture Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and 1366 Technologies Scaling The Venture Case Study Analysis in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 scenario? Do the long valuable experience, technical resources and the abilities 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?
1366 Technologies Scaling The Venture Case Study Solution has particular strengths that can be used to decrease the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of 1366 Technologies Scaling The Venture Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position permits the business to consider a number of development chances without any fear of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of 1366 Technologies Scaling The Venture Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
The development of the publishing industry is declining because 2008, impacting 1366 Technologies Scaling The Venture Case Study Solution as well, however the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed certain risks to 1366 Technologies Scaling The Venture Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of 1366 Technologies Scaling The Venture Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry together with presence of high competitors increases the hazard of losing the customer base.
Due to absence of information, the monetary ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly overall earnings of 1366 Technologies Scaling The Venture Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a big number of customers at a prospective price.
Together with it, the second chart which reveals the yearly growth in the 1366 Technologies Scaling The Venture Case Study Analysis total assets, shows that the business is quite efficient in including value to its properties through its incomes. The development in properties shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the distribution of total revenues of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a prospective development to accomplish its future advancement objective.
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting 1366 Technologies Scaling The Venture Case Study Analysis business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting 1366 Technologies Scaling The Venture Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the 1366 Technologies Scaling The Venture Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
CMP runs in a highly competitive market with the presence of large number of rivals. The company 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 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as 1366 Technologies Scaling The Venture Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its products in the market.
As the choices are moving towards digital publishing and the business require an immediate service to avoid the declining industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first collects the data associated with the consumer need, the potential markets, the government policies and the data connected to the competitors presented in the market. After that, the business must choose one potential segment for its preliminary offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. The business should go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
The development of the publishing industry is decreasing given that 2008, revealing a threat to the company's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.