Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution and Analysis
Introduction
Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution is the largest publishing business 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 comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing market in basic and Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation 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
Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help has certain strengths that can be utilized to minimize the dangers, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position enables the company to think about a number of development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which might increase restraints for the company in executing its development program. The weak points of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis as well, however the growth might be revived by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured particular dangers to Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be calculated. The general financial performance of the company might be analyzed by utilizing the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution is growing and the company is quite effective in bring in a large number of clients at a prospective rate.
Together with it, the second graph which reveals the yearly growth in the Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution overall possessions, reveals that the business is quite efficient in adding worth to its possessions through its profits. The growth in possessions reveals that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis relating to the distribution of overall earnings of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies connected to the import of books affect the overall service at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out helpful materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution includes the issues of environmental neighborhoods 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition 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. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help include;.
• 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 could wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate option to prevent the decreasing industry growth. For that reason, intro of digital publishing could show to be an immediate service with low quantity of danger for the company. The company 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 company should first gathers the data related to the customer demand, the prospective markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the business needs to choose one potential section for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' products. The actions above the business ought to go for the initial offering. If the initial offering proves a success, the company needs to choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a danger to the business's long term existence, however the situation can be controlled by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
