1366 Technologies Scaling The Venture Case Study Solution and Analysis
Introduction
1366 Technologies Scaling The Venture 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 information company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and 1366 Technologies Scaling The Venture Case Study Solution in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement 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 important experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
1366 Technologies Scaling The Venture Case Study Solution has certain strengths that can be made use of to minimize the hazards, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of 1366 Technologies Scaling The Venture Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the company to consider numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restraints for the company in implementing its development program. The weak points of 1366 Technologies Scaling The Venture Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, affecting 1366 Technologies Scaling The Venture Case Study Analysis as well, however the growth could be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The company 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 reduce its dependence over Chinese markets by using its large funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has positioned certain dangers to 1366 Technologies Scaling The Venture Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of 1366 Technologies Scaling The Venture Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly overall revenues of 1366 Technologies Scaling The Venture Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in drawing in a big number of customers at a prospective cost.
In addition to it, the second graph which reveals the annual growth in the 1366 Technologies Scaling The Venture Case Study Help total assets, reveals that the company is rather efficient in including value to its properties through its incomes. The development in possessions reveals that the total worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the distribution of overall incomes of the company. Huge part of the profits 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 service segments with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting 1366 Technologies Scaling The Venture Case Study Help organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the 1366 Technologies Scaling The Venture Case Study Solution. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting 1366 Technologies Scaling The Venture Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents presented in the digital libraries on particular sites. The altering consumer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the 1366 Technologies Scaling The Venture Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal 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 Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in different market sections, with a major concentrate on educational publications. CIP serves as a threat for CMP as it could 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 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as 1366 Technologies Scaling The Venture Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product 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 service segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market growth. Intro of digital publishing might show to be an instant solution with low quantity of threat for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to first collects the data related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a risk to the company's long term presence, however the scenario can be managed by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
