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 offers a number of services consisting of; gathering info, processing info and communication services. Significant organisation sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. Intellectual Ventures B Case Study Help has actually become a specialized info provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Intellectual Ventures B Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change 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 abilities 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 Analysis has particular strengths that can be used to reduce the dangers, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Intellectual Ventures B Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position allows the company to consider numerous development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Intellectual Ventures B Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Intellectual Ventures B Case Study Help as well, however the growth might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain hazards to Intellectual Ventures B Case Study Solution consisting of;( Gurel, 2017).
• Introduction 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 large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the annual total revenues of Intellectual Ventures B Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is quite effective in bring in a large number of clients at a prospective cost.
In addition to it, the 2nd chart which shows the yearly development in the Intellectual Ventures B Case Study Analysis total properties, shows that the business is rather efficient in adding value to its assets through its revenues. The development in possessions shows that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the given data could be the analysis concerning the circulation of overall revenues of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Intellectual Ventures B Case Study Analysis company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Intellectual Ventures B Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the total company at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Intellectual Ventures B Case Study Help. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Intellectual Ventures B Case Study Solution consists of the issues of environmental communities 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the digital libraries on certain websites. The altering consumer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Intellectual Ventures B Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Intellectual Ventures B Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 sections to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an immediate option to avoid the decreasing market development. Therefore, intro of digital publishing might show to be an instant solution with low quantity of danger for the business. However, the business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should initially gathers the information associated with the consumer need, the prospective markets, the government regulations and the information associated with the rivals presented in the market. After that, the company should choose one prospective section for its preliminary offering. It must collect research study that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the business ought to opt for the preliminary offering. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a threat to the company's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
