Alibaba Ipo Dilemma Case Study Solution and Analysis
Intro
Alibaba Ipo Dilemma Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing details and interaction services. Major company segments of the business include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its major items consist of books, regulars, online media, exhibits, research study reports and so on. Alibaba Ipo Dilemma Case Study Analysis has actually become a specialized information company and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Alibaba Ipo Dilemma Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing 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 several questions 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 capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Alibaba Ipo Dilemma Case Study Analysis has specific strengths that can be made use of to minimize the hazards, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Alibaba Ipo Dilemma Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position enables the company to consider a number of development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in executing its advancement program. The weaknesses of Alibaba Ipo Dilemma Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining because 2008, affecting Alibaba Ipo Dilemma Case Study Analysis as well, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Alibaba Ipo Dilemma Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Alibaba Ipo Dilemma Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market together with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. Nevertheless, the overall financial efficiency of the company could be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Alibaba Ipo Dilemma Case Study Solution is growing and the company is quite effective in drawing in a large number of consumers at a prospective cost.
Together with it, the second chart which shows the yearly growth in the Alibaba Ipo Dilemma Case Study Analysis total assets, shows that the business is rather effective in adding value to its properties through its earnings. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis regarding the circulation of total profits of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided 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 federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income 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.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Alibaba Ipo Dilemma Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Alibaba Ipo Dilemma Case Study Help include the suppliers of the paper for releasing 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 Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Alibaba Ipo Dilemma Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Alibaba Ipo Dilemma Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an instant option to prevent the decreasing market development. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should first gathers the information connected to the consumer need, the possible markets, the government regulations and the data associated with the competitors provided in the market. After that, the company must decide one possible section for its initial offering. It ought to collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company should go for the preliminary offering. The company must go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a threat to the company's long term existence, however the scenario can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
