Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Solution and Analysis
Introduction
Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing details and communication services. Major business sections of the business include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research reports and so on. Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Analysis has actually become a specialized information supplier and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Help has particular strengths that can be utilized to lower the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position enables the company to think about several advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase restraints for the company in executing its development program. The weaknesses of Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining given that 2008, affecting Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Solution as well, but the growth could be restored by availing particular chances presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has postured certain hazards to Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall earnings of Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is quite effective in attracting a big number of customers at a prospective price.
Along with it, the second chart which reveals the annual growth in the Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Analysis total assets, reveals that the business is rather effective in adding value to its properties through its earnings. The development in possessions reveals that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the distribution of total profits of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Solution in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies associated with the import of books affect the general company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Help includes the concerns of ecological neighborhoods 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 used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Paul Capital And Project U Secondary Sales Of Private Equity Stakes Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition 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 need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate service to prevent the declining market growth. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the customer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, showing a risk to the company's long term presence, however the scenario can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
