Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution and Analysis
Introduction
Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing info and communication services. Major business sections of the company consist of; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major products include books, periodicals, online media, exhibits, research study reports and so on. Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help has actually become a specialized information company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help has specific strengths that can be used to reduce the dangers, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase constraints for the company in implementing its advancement program. The weaknesses of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis too, but the growth could be revived by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented specific dangers to Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The business has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be determined. Nevertheless, the total financial efficiency of the business could be analyzed by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution is growing and the business is rather effective in bring in a large number of customers at a potential rate.
Together with it, the 2nd chart which shows the annual growth in the Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis total properties, shows that the company is quite effective in including worth to its assets through its revenues. The development in properties shows that the overall value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis in specific includesthe prices of paper, the income 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. Along with it, the economic policies connected to the import of books impact the general organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution consists of the concerns of environmental communities over the use 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 must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution include the suppliers of the paper for publishing documents. 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.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis include;.
• Chemical Market 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the decreasing industry development. The business might also think about the growth 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 demand, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, revealing a threat to the business's long term existence, but the situation can be controlled by considering an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
