Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution and Analysis
Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis has particular strengths that can be utilized to lower the risks, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position permits the company to think about several development chances with no worry of raising fund externally.
Together with the strengths, the company has particular weak points which could increase constraints for the company in implementing its development program. The weaknesses of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is declining because 2008, affecting Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help also, but the growth could be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing market has postured particular threats to Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the consumer base.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be computed. The general financial performance of the business might be evaluated by using the charts provided in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of customers at a potential cost.
Together with it, the 2nd graph which shows the annual growth in the Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help total assets, reveals that the company is rather effective in adding worth to its assets through its earnings. The growth in assets reveals that the overall value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis relating to the distribution of overall revenues of the business. Huge 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 could move towards other business sectors with a prospective development to achieve its future development objective.
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
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 guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Elephant Bar Restaurant Mezzanine Financing 2 Case Study Solution business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the general organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative materials etc. China has the greatest population on the planet with a high population development, revealing the increasing number of consumers of the Elephant Bar Restaurant Mezzanine Financing 2 Case Study Help. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry 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 providers of the Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the buyers needs high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, 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 Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant concentrate on academic publications. CIP functions as a threat 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 Elephant Bar Restaurant Mezzanine Financing 2 Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period 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 profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior concentrate 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.
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing industry growth. For that reason, intro of digital publishing might prove to be an immediate option with low quantity of risk for the company. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should first gathers the information related to the consumer demand, the potential markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, revealing a threat to the business's long term existence, however the scenario can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.