Highland Capital Partners Investing In Cleantech Case Study Solution and Analysis
Intro
Highland Capital Partners Investing In Cleantech Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing information and communication services. Significant company sectors of the business include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major products consist of books, regulars, online media, exhibitions, research study reports and so on. Highland Capital Partners Investing In Cleantech Case Study Solution has actually ended up being a specialized info supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in general and Highland Capital Partners Investing In Cleantech Case Study Solution in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous 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 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
Highland Capital Partners Investing In Cleantech Case Study Help has specific strengths that can be utilized to reduce the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Highland Capital Partners Investing In Cleantech Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to consider several advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which could increase constraints for the company in executing its advancement program. The weak points of Highland Capital Partners Investing In Cleantech Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Highland Capital Partners Investing In Cleantech Case Study Help too, however the development could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned specific dangers to Highland Capital Partners Investing In Cleantech Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Highland Capital Partners Investing In Cleantech Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry along with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual total incomes of Highland Capital Partners Investing In Cleantech Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is quite efficient in drawing in a big number of clients at a potential cost.
Together with it, the 2nd graph which shows the annual development in the Highland Capital Partners Investing In Cleantech Case Study Help total properties, shows that the company is quite efficient in adding worth to its assets through its revenues. The growth in properties shows that the total worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis concerning the distribution of total profits of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Highland Capital Partners Investing In Cleantech Case Study Solution organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Highland Capital Partners Investing In Cleantech Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Highland Capital Partners Investing In Cleantech Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard 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. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Risk 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 specific sites. The changing consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Highland Capital Partners Investing In Cleantech Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Highland Capital Partners Investing In Cleantech Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a major concentrate on educational publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Highland Capital Partners Investing In Cleantech Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the declining industry development. Introduction of digital publishing might prove to be an instant solution with low amount of danger for the business. However, the business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the data associated with the consumer need, the potential markets, the government policies and the data related to the competitors presented in the market. After that, the business needs to decide one potential sector for its initial offering. It should collect research that how it could distinguish its digital publishing from the existing rivals' items. The actions above the business need to go for the preliminary offering. If the preliminary offering proves a success, the company must choose 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 business's long term presence, however the situation can be managed by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
