Blackstone Groups Ipo Case Study Solution and Analysis
Introduction
Blackstone Groups Ipo Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing info and communication services. Significant business sections of the business consist of; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. Blackstone Groups Ipo Case Study Analysis has actually ended up being a specialized information service provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Blackstone Groups Ipo Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Blackstone Groups Ipo Case Study Analysis has certain strengths that can be made use of to lower the dangers, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Blackstone Groups Ipo Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position allows the company to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weak points of Blackstone Groups Ipo Case Study Analysis 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 highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Blackstone Groups Ipo Case Study Solution as well, however the growth could be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment 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 huge funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has presented certain risks to Blackstone Groups Ipo Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Blackstone Groups Ipo Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals 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 certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. Nevertheless, the general financial efficiency of the business could be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Blackstone Groups Ipo Case Study Help is growing and the company is rather efficient in bring in a a great deal of customers at a potential cost.
In addition to it, the 2nd chart which reveals the yearly development in the Blackstone Groups Ipo Case Study Solution total possessions, reveals that the company is quite effective in adding worth to its properties through its incomes. The development in possessions reveals that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis concerning the circulation of total incomes of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the performance of the company and the recent patterns 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 might have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading helpful products etc. China has the greatest population worldwide with a high population growth, revealing the increasing number of consumers of the Blackstone Groups Ipo Case Study Analysis. However, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Blackstone Groups Ipo Case Study Solution includes the issues of environmental communities 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 needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Blackstone Groups Ipo Case Study Help consist of 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 provider for CMP is low.
Bargaining Power of Purchaser.
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 requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Blackstone Groups Ipo Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Blackstone Groups Ipo Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk 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 existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate service to prevent the decreasing industry development. The company could also 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 business ought to first collects the data related to the customer need, the possible markets, the government policies 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 implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a hazard to the business's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
