Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution and Analysis
Introduction
Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in general and Invest Or Take A Venture Capital Ethical Dilemma Case Study Help in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
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 company could be used 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 Analysis has certain strengths that can be used to lower the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position allows the business to think about numerous development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restrictions for the company in executing its advancement program. The weak points of Invest Or Take A Venture Capital Ethical Dilemma 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 should propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Invest Or Take A Venture Capital Ethical Dilemma Case Study Help also, but the growth might be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually presented specific threats to Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be calculated. Nevertheless, the general financial performance of the company could be examined by using the graphs given up the case Appendices. It could be examined from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution is growing and the company is quite efficient in bring in a a great deal of consumers at a prospective price.
In addition to it, the 2nd chart which reveals the annual development in the Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution total possessions, reveals that the company is rather effective in adding value to its properties through its incomes. The development in possessions shows that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis regarding the distribution of total revenues of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are likewise 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 total GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Invest Or Take A Venture Capital Ethical Dilemma Case Study Analysis consists of the issues of ecological communities over the usage 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 policies 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 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Invest Or Take A Venture Capital Ethical Dilemma Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in numerous market sections, with a major concentrate on educational publications. CIP acts 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 Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
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 company to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market development. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must first gathers the information associated with the consumer demand, the prospective markets, the federal government policies and the information associated with the competitors presented in the market. After that, the company should decide one prospective sector for its initial offering. It must gather research study that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the business ought to choose the preliminary offering. If the preliminary offering shows a success, the company should choose the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a threat to the company's long term presence, however the circumstance can be managed by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
