Nice Ventures Case Study Solution and Analysis
Introduction
Nice Ventures Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and Nice Ventures Case Study Analysis in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change 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 capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Nice Ventures Case Study Analysis has specific strengths that can be used to decrease the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Nice Ventures Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong monetary position allows the business to consider numerous advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Nice Ventures Case Study Help are offered as follows;
• Despite of being a science and technology 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 growth. It must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Nice Ventures Case Study Solution too, however the development could be revived by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has presented specific risks to Nice Ventures Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Nice Ventures Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry in addition to presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly overall earnings of Nice Ventures Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite effective in bring in a big number of clients at a potential price.
Along with it, the second chart which shows the annual development in the Nice Ventures Case Study Analysis total possessions, reveals that the business is rather efficient in adding worth to its assets through its incomes. The development in properties reveals that the total value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Nice Ventures Case Study Help business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Nice Ventures Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the overall service at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Nice Ventures Case Study Analysis consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Nice Ventures Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Nice Ventures Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in different market sectors, with a major focus on instructional publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Nice Ventures Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular 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 reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 business sectors to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant service to prevent the declining market development. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer need, the prospective markets, the federal government policies and the data associated with the competitors provided in the market. After that, the company ought to choose one prospective segment for its preliminary offering. It ought to gather research study that how it could differentiate its digital publishing from the existing rivals' products. The steps above the company should go for the preliminary offering. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a risk to the business's long term existence, but the scenario can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
