Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Solution and Analysis
Intro
Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing details and communication services. Major service sectors of the business include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports etc. Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Help has actually become a specialized information company and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be used 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
Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Help has particular strengths that can be used to reduce the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong monetary position allows the business to think about a number of development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase restraints for the company in executing its advancement program. The weak points of Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Solution too, however the development might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has postured specific dangers to Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market along with existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be determined. The general monetary efficiency of the company could be examined by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Analysis is growing and the company is rather effective in bring in a a great deal of customers at a prospective cost.
Together with it, the 2nd graph which shows the annual growth in the Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Help overall assets, reveals that the business is quite effective 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 total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis regarding the distribution of overall earnings of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame 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 Celebration of China. Therefore, it could be stated that the total political forces affecting Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Help business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the general company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful materials etc. China has the greatest population on the planet with a high population development, showing the increasing number of consumers of the Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents provided in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market 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 rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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).
It was also established in the exact same duration as Musicjuicenet The Challenges Of Starting Up A New Internet Venture Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
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 need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining market growth. Therefore, introduction of digital publishing might show to be an instant service with low quantity of risk for the business. Nevertheless, the business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer demand, the potential markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the business should choose one potential sector for its initial offering. It needs to gather research study that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the business need to opt for the initial offering. If the initial offering proves a success, the company needs to go for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a risk to the company's long term presence, however the situation can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
