Highland Capital Partners Investing In Cleantech Case Study Solution and Analysis
Intro
Highland Capital Partners Investing In Cleantech Case Study Solution is the biggest publishing company with a highest 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 company segments of the business include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its significant items include books, periodicals, online media, exhibits, research study reports and so on. Highland Capital Partners Investing In Cleantech Case Study Solution has actually ended up being a specialized details company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Highland Capital Partners Investing In Cleantech Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised several 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 capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Highland Capital Partners Investing In Cleantech Case Study Help has certain strengths that can be made use of to decrease the threats, overcome the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Highland Capital Partners Investing In Cleantech Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong financial position allows the business to think about numerous advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Highland Capital Partners Investing In Cleantech Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining since 2008, affecting Highland Capital Partners Investing In Cleantech Case Study Help as well, however the development could be restored by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has posed specific risks to Highland Capital Partners Investing In Cleantech Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Highland Capital Partners Investing In Cleantech Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market together with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly total earnings of Highland Capital Partners Investing In Cleantech Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is rather effective in drawing in a big number of consumers at a possible rate.
Together with it, the second graph which shows the yearly growth in the Highland Capital Partners Investing In Cleantech Case Study Solution total possessions, reveals that the business is quite efficient in including value to its possessions through its incomes. The growth in properties shows that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis relating to the distribution of total revenues of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Highland Capital Partners Investing In Cleantech Case Study Solution includes the issues 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 utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the digital libraries on certain websites. The changing consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
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. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Highland Capital Partners Investing In Cleantech Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry 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 files 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. Major rivals of Highland Capital Partners Investing In Cleantech Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in numerous market sectors, with a major focus on academic publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Highland Capital Partners Investing In Cleantech Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the declining industry growth. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the consumer demand, the possible markets, the federal government regulations and the information related to the competitors presented in the market. After that, the company must decide one potential section for its initial offering. It should gather research that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the business must opt for the initial offering. If the initial offering shows a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
