Khosla Ventures Biofuels Gain Liquidity Case Study Solution and Analysis
Khosla Ventures Biofuels Gain Liquidity Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing information and interaction services. Significant company sections of the company include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports and so on. Khosla Ventures Biofuels Gain Liquidity Case Study Analysis has become a specialized info company and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Khosla Ventures Biofuels Gain Liquidity Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These elements 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.
The improvement 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 utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Khosla Ventures Biofuels Gain Liquidity Case Study Solution has particular strengths that can be utilized to minimize the threats, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Khosla Ventures Biofuels Gain Liquidity Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the business to think about numerous development chances without any worry of raising fund externally.
Together with the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Khosla Ventures Biofuels Gain Liquidity Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is decreasing because 2008, affecting Khosla Ventures Biofuels Gain Liquidity Case Study Analysis also, but the development could be restored by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has actually postured certain dangers to Khosla Ventures Biofuels Gain Liquidity Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Khosla Ventures Biofuels Gain Liquidity Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the threat of losing the consumer base.
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. However, the total monetary performance of the business could be examined by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Khosla Ventures Biofuels Gain Liquidity Case Study Solution is growing and the business is quite effective in attracting a large number of consumers at a possible price.
In addition to it, the second chart which reveals the annual development in the Khosla Ventures Biofuels Gain Liquidity Case Study Solution overall possessions, shows that the company is rather efficient in including worth to its possessions through its earnings. The development in assets shows that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis relating to the distribution of overall profits of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a potential development to achieve its future advancement goal.
PESTEL analysis could be performed to learn the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Khosla Ventures Biofuels Gain Liquidity Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the total organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting Khosla Ventures Biofuels Gain Liquidity Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the released files is the files presented in the digital libraries on specific websites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
Competitive rivalry 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, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Khosla Ventures Biofuels Gain Liquidity Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
CMP runs in an extremely competitive market with the existence 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. Significant competitors of Khosla Ventures Biofuels Gain Liquidity Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in numerous market segments, with a significant focus on educational publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Khosla Ventures Biofuels Gain Liquidity Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing industry development. The business could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer demand, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
The development of the publishing market is declining since 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.