Khosla Ventures Biofuels Gain Liquidity Case Study Solution and Analysis
Introduction
Khosla Ventures Biofuels Gain Liquidity Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing details and interaction services. Significant organisation sectors of the company include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major items consist of books, regulars, online media, exhibitions, research reports etc. Khosla Ventures Biofuels Gain Liquidity Case Study Analysis has actually become a specialized details supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Khosla Ventures Biofuels Gain Liquidity Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 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
Khosla Ventures Biofuels Gain Liquidity Case Study Help has particular strengths that can be made use of to lower the hazards, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Khosla Ventures Biofuels Gain Liquidity Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position allows the business to think about several development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Khosla Ventures Biofuels Gain Liquidity Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Khosla Ventures Biofuels Gain Liquidity Case Study Analysis also, but the growth might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also present 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 reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned particular risks to Khosla Ventures Biofuels Gain Liquidity Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Khosla Ventures Biofuels Gain Liquidity Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market along with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. The overall financial efficiency of the business could be evaluated by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Khosla Ventures Biofuels Gain Liquidity Case Study Analysis is growing and the company is rather effective in drawing in a large number of customers at a potential cost.
Along with it, the second chart which shows the annual growth in the Khosla Ventures Biofuels Gain Liquidity Case Study Solution total properties, reveals that the company is rather effective in adding value to its assets through its profits. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis concerning the circulation of total earnings of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces impacting the performance of the business and the current trends 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 influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Khosla Ventures Biofuels Gain Liquidity Case Study Help organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Khosla Ventures Biofuels Gain Liquidity Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies related to the import of books impact the total service at CPM. China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Khosla Ventures Biofuels Gain Liquidity Case Study Analysis includes the issues of ecological 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 regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Khosla Ventures Biofuels Gain Liquidity Case Study Help consist of the providers of the paper for releasing 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.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. 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 include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the prominent gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible 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 utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to prevent the decreasing market development. Intro of digital publishing could show to be an immediate solution with low amount of risk for the business. However, the company might likewise 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 business must first gathers the data related to the customer demand, the prospective markets, the federal government policies and the data related to the competitors presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a threat to the company's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
