Ecopost Financing A Green Startup In Africa Case Study Solution and Analysis
Intro
Ecopost Financing A Green Startup In Africa Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing info and interaction services. Major business segments of the company consist of; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Ecopost Financing A Green Startup In Africa Case Study Help has actually become a specialized details service provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and Ecopost Financing A Green Startup In Africa Case Study Help in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 scenario? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ecopost Financing A Green Startup In Africa Case Study Solution has particular strengths that can be used to lower the risks, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Ecopost Financing A Green Startup In Africa Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• 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 particular weak points which might increase constraints for the business in executing its development program. The weaknesses of Ecopost Financing A Green Startup In Africa Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Ecopost Financing A Green Startup In Africa Case Study Help too, however the development could be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned particular dangers to Ecopost Financing A Green Startup In Africa Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Ecopost Financing A Green Startup In Africa Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market along with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total revenues of Ecopost Financing A Green Startup In Africa Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a big number of customers at a possible rate.
Together with it, the 2nd chart which reveals the annual development in the Ecopost Financing A Green Startup In Africa Case Study Analysis total properties, reveals that the business is rather efficient in including worth to its assets through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the circulation of total profits 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 company could move towards other company sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn 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 company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Ecopost Financing A Green Startup In Africa Case Study Solution company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Ecopost Financing A Green Startup In Africa Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total business at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting 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 disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Ecopost Financing A Green Startup In Africa Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Ecopost Financing A Green Startup In Africa Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in various market sections, with a major focus on academic publications. 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 marketplace share of Ecopost Financing A Green Startup In Africa Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an instant service to avoid the declining industry growth. Introduction of digital publishing might prove to be an instant solution with low amount of danger for the business. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data related to the customer need, the possible markets, the government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a hazard to the company's long term presence, however the circumstance can be managed by thinking about 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 avoid the danger of failure for entrance in the new markets.
