Ecopost Financing A Green Startup In Africa Case Study Solution and Analysis
Ecopost Financing A Green Startup In Africa Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and Ecopost Financing A Green Startup In Africa Case Study Help in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of concerns 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 business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Ecopost Financing A Green Startup In Africa Case Study Analysis has particular strengths that can be used to reduce the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ecopost Financing A Green Startup In Africa Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong financial position allows the company to think about numerous advancement opportunities without any worry of raising fund externally.
Along with the strengths, the company has certain weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of Ecopost Financing A Green Startup In Africa Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is decreasing because 2008, affecting Ecopost Financing A Green Startup In Africa Case Study Analysis as well, however the growth might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has actually posed certain risks to Ecopost Financing A Green Startup In Africa Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Ecopost Financing A Green Startup In Africa Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competition increases the threat of losing the consumer base.
Due to absence of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly total revenues of Ecopost Financing A Green Startup In Africa Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in bring in a large number of customers at a possible price.
In addition to it, the 2nd graph which shows the annual growth in the Ecopost Financing A Green Startup In Africa Case Study Solution overall properties, reveals that the business is rather efficient in including worth to its properties through its incomes. The development in properties shows that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis concerning the circulation of total profits of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a prospective growth to accomplish its future development objective.
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting Ecopost Financing A Green Startup In Africa Case Study Analysis business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Ecopost Financing A Green Startup In Africa Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Ecopost Financing A Green Startup In Africa Case Study Analysis consists of the issues 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 utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files presented in the digital libraries on certain sites. The altering consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Ecopost Financing A Green Startup In Africa Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Ecopost Financing A Green Startup In Africa Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Ecopost Financing A Green Startup In Africa Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the company require an immediate option to avoid the declining industry growth. The business could likewise consider the expansion 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 data connected to the customer demand, the possible markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the company should choose one prospective section for its preliminary offering. It needs to gather research that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company ought to go for the initial offering. If the initial offering shows a success, the company must choose the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term presence, however the scenario can be managed by considering a development 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 entryway in the new markets.