Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Solution and Analysis
Introduction
Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent 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 Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Analysis has certain strengths that can be used to minimize the risks, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the business to consider a number of development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, 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 needs to propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Help as well, however the growth could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has positioned certain hazards to Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total profits of Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a big number of customers at a possible rate.
Along with it, the 2nd graph which reveals the yearly development in the Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Solution overall assets, shows that the company is quite efficient in including value to its assets through its profits. The growth in possessions shows that the total worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis regarding the circulation of overall incomes of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces affecting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books affect the total service at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
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.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files presented in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry 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. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Building Sustainable High Growth Startup Companies Management Systems As An Accelerator Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
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.
Recommendations
As the choices are moving towards digital publishing and the company need an instant service to prevent the decreasing market growth. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to first collects the data related to the consumer demand, the potential markets, the federal government guidelines and the data associated with the rivals presented in the market. After that, the business should decide one possible section for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the business need to opt for the initial offering. The company should go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a threat to the company's long term existence, however the situation can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
