Braintree Momentum Equity Fund Case Study Solution and Analysis
Introduction
Braintree Momentum Equity Fund Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing information and interaction services. Significant business segments of the company include; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Braintree Momentum Equity Fund Case Study Help has actually become a specialized information company and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Braintree Momentum Equity Fund Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 circumstance? Do the long important 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
Braintree Momentum Equity Fund Case Study Analysis has certain strengths that can be used to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Braintree Momentum Equity Fund Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong monetary position permits the company to consider several development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Braintree Momentum Equity Fund Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Braintree Momentum Equity Fund Case Study Help as well, but the growth could be restored by availing specific chances provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually presented specific threats to Braintree Momentum Equity Fund Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Braintree Momentum Equity Fund Case Study Solution due to the consumer shift towards virtual 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 gain a strong customer base by using specific techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total revenues of Braintree Momentum Equity Fund Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in attracting a big number of consumers at a possible price.
Together with it, the 2nd graph which reveals the annual growth in the Braintree Momentum Equity Fund Case Study Solution overall properties, reveals that the business is quite effective in adding worth to its assets through its earnings. The development in assets shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis concerning the circulation of overall incomes 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 segments with a prospective development to accomplish its future advancement goal.
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 company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Braintree Momentum Equity Fund Case Study Solution business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Braintree Momentum Equity Fund Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Braintree Momentum Equity Fund Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry 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 documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Braintree Momentum Equity Fund Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in different market sectors, with a significant concentrate on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Braintree Momentum Equity Fund Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Braintree Momentum Equity Fund Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing industry growth. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the information related to the customer need, the potential markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a threat to the company's long term presence, however the scenario can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
