Facebook Valuation Case Study Solution and Analysis
Intro
Facebook Valuation Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing details and communication services. Major service sections of the business include; books, regulars, consultancy and circulation. The company has a large product portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. Facebook Valuation Case Study Solution has actually ended up being a specialized information company and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Facebook Valuation Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions 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 made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Facebook Valuation Case Study Analysis has specific strengths that can be made use of to lower the hazards, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Facebook Valuation Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong monetary position permits the business to consider several development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which might increase restrictions for the business in executing its advancement program. The weak points of Facebook Valuation Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Facebook Valuation Case Study Solution as well, however the development might be restored by availing certain chances 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 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 using its huge funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has presented specific threats to Facebook Valuation Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Facebook Valuation Case Study Analysis due to the customer shift towards digital libraries.
• The existence 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 customer base by using particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly overall earnings of Facebook Valuation Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in drawing in a big number of consumers at a potential cost.
Along with it, the second chart which shows the annual development in the Facebook Valuation Case Study Help total possessions, reveals that the company is rather effective in adding worth to its possessions through its earnings. The growth in properties shows that the overall worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the circulation of overall incomes of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Facebook Valuation Case Study Help organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful materials and so on. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Facebook Valuation Case Study Analysis. However, the consumer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Facebook Valuation Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market 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 competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Facebook Valuation Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Facebook Valuation Case Study Help 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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Facebook Valuation Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to avoid the decreasing market growth. For that reason, intro of digital publishing might prove to be an immediate solution with low quantity of threat for the company. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the customer demand, the prospective markets, the government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the business must 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 industry is decreasing because 2008, showing a risk to the business's long term presence, but the scenario can be managed by considering a development plan in the future. The company could consider presenting 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.
