Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution and Analysis
Intro
Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing information and communication services. Significant organisation sections of the company include; books, regulars, consultancy and distribution. The company has a large item portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution has actually become a specialized details service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement 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 valuable experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution has particular strengths that can be utilized to decrease the risks, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong financial position allows the business to think about several development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase constraints for the business in implementing its development program. The weaknesses of Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis as well, however the development might be revived by availing specific chances provided in the market. The marketplace chances 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 consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has postured certain hazards to Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual total earnings of Invest Or Take A Venture Capital Ethical Dilemma Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is rather efficient in bring in a big number of clients at a prospective rate.
In addition to it, the 2nd graph which shows the annual development in the Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis overall assets, reveals that the business is rather efficient in including value to its properties through its earnings. The development in assets shows that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis concerning the circulation of overall revenues of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the Invest Or Take A Venture Capital Ethical Dilemma Case Study Help. Nevertheless, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the digital libraries on certain sites. The altering consumer choices towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence 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 also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks third and second in various market segments, with a major focus on instructional publications. CIP serves as a threat 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 Invest Or Take A Venture Capital Ethical Dilemma Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value 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 company to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate solution to prevent the declining industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data associated with the consumer need, the prospective markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the business ought to choose one possible section for its preliminary offering. It needs to gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business should go for the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a hazard to the company's long term existence, but the situation can be controlled by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
