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Intellectual Ventures B Case Analysis

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Intellectual Ventures B Case Study Solution and Analysis


Intro

Intellectual Ventures B Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Crucial Issues

CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in general and Intellectual Ventures B Case Study Analysis in specific. These aspects include;

• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
Executive Summary
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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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


Intellectual Ventures B Case Study Solution has particular strengths that can be utilized to lower the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;

• The long term experience of Intellectual Ventures B Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the business to consider a number of advancement opportunities with no fear of raising fund externally.

Weak points

Together with the strengths, the company has specific weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of Intellectual Ventures B Case Study Help are offered as follows;

• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing market is decreasing given that 2008, affecting Intellectual Ventures B Case Study Solution as well, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP include;

• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.

Risks

The changing macro trends in the market and increasing competition in the publishing market has posed certain hazards to Intellectual Ventures B Case Study Help including;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Intellectual Ventures B Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.

Monetary Analysis.
Swot Analysis
Due to lack of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual overall incomes of Intellectual Ventures B Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in drawing in a large number of clients at a potential price.

Together with it, the 2nd chart which reveals the yearly growth in the Intellectual Ventures B Case Study Help overall possessions, shows that the company is quite effective in including worth to its possessions through its earnings. The development in possessions reveals that the total value of the company is also increasing with increasing the overall profits. (Unknown, 2013).

Another monetary analysis of the company utilizing the provided information might be the analysis relating to the circulation of total incomes of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a potential growth to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis might be performed to find out the various external forces affecting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.

Cost-effective.

Financial forces impacting the publishing sector in basic and the Intellectual Ventures B Case Study Solution in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies related to the import of books affect the overall service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.

Social and Demographical.

Social and demographical forces consist of the population development, the customer's choices towards reading useful materials etc. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Intellectual Ventures B Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.

Technological.

Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces affecting Intellectual Ventures B Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.

Market Analysis (Porter's Five Forces Model).

Porter's 5 Forces Model could be used to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.

Hazard of New Entrants.

Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.

Risk of Alternative.

Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of substitution for the industry.

Competitive Competition.

Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.

Bargaining Power of Provider.

The major suppliers of the Intellectual Ventures B Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Bargaining 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 buyers needs high quality documents at competitive costs.

Competitors Analysis.

CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Intellectual Ventures B Case Study Solution consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close competitors of CMP. Established in the same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in various market sections, with a major concentrate on instructional publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Intellectual Ventures B Case Study Solution easily in the present market situation.

Posts and telecommunication Press (PTP).

Another close competitor 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 regards to service scale. It is also among the prominent players in the publishing market with an annual overall revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.

Recommendations

With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an instant option to prevent the decreasing market development. For that reason, introduction of digital publishing might show to be an instant service with low quantity of danger for the business. The company 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 company should first gathers the information related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

Although, the growth of the publishing industry is decreasing because 2008, showing a threat to the business's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.

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