Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution and Analysis
Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing market in general and Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution in particular. These aspects consist of;
• Entrance of the new publishing companies 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help has particular strengths that can be used to minimize the risks, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong financial position enables the business to think about numerous development opportunities without any worry of raising fund externally.
Together with the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its development program. The weak points of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis are offered as follows;
• Despite of being a science and technology 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 ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution also, however the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned particular dangers to Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the threat of losing the customer base.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total earnings of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather efficient in attracting a large number of consumers at a potential cost.
Along with it, the second graph which shows the annual development in the Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help total assets, reveals that the company is quite efficient in adding worth to its assets through its incomes. The growth in properties reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis concerning the circulation of overall earnings of the company. 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 company could move towards other service sectors with a prospective development to accomplish its future advancement objective.
PESTEL analysis might be conducted to learn the various external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the mindset 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. Therefore, it could be stated that the general political forces affecting Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Ecological forces impacting Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on certain websites. The altering consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers 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 participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a major focus on educational publications. CIP functions 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 Acumen Fund And Embrace From The Leading Edge Of Social Venture Investing Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the decreasing industry growth. The business could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business ought to first gathers the information related to the consumer demand, the possible markets, the federal government policies and the information related to the competitors provided in the market. If the initial offering proves 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.
Although, the growth of the publishing market is declining since 2008, revealing a risk to the business's long term presence, however the situation can be managed by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.