Praire Ventures Limited Case Study Solution and Analysis
Praire Ventures Limited Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing details and communication services. Major organisation sections of the business include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items include books, periodicals, online media, exhibits, research reports and so on. Praire Ventures Limited Case Study Solution has ended up being a specialized details company and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Praire Ventures Limited Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns 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 business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Praire Ventures Limited Case Study Analysis has specific strengths that can be made use of to decrease the threats, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Praire Ventures Limited Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position enables the company to think about several advancement opportunities with no fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restrictions for the company in executing its advancement program. The weaknesses of Praire Ventures Limited Case Study Analysis are given 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 extremely relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
The growth of the publishing industry is decreasing because 2008, affecting Praire Ventures Limited Case Study Analysis as well, but the growth could be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented certain threats to Praire Ventures Limited Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Praire Ventures Limited Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry together with presence of high competition increases the risk of losing the client base.
The company has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be determined. The general monetary performance of the business might be examined by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Praire Ventures Limited Case Study Analysis is growing and the company is quite efficient in drawing in a a great deal of customers at a prospective rate.
Together with it, the 2nd chart which shows the yearly development in the Praire Ventures Limited Case Study Solution total properties, shows that the business is rather efficient in adding value to its properties through its earnings. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the distribution of overall revenues of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a potential growth to accomplish its future development objective.
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the total political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products and so on. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Praire Ventures Limited Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Praire Ventures Limited Case Study Solution includes 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 disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the danger of replacement for the market.
Competitive competition in the publishing industry is high. The presence of large number of consumers 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 also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Praire Ventures Limited Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 documents at competitive costs.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Praire Ventures Limited Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Praire Ventures Limited Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its products in the market.
As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the declining industry development. The business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially collects the data connected to the consumer need, the prospective markets, the government policies and the data related to the rivals presented in the market. After that, the company must choose one potential sector for its initial offering. It ought to collect research study that how it might separate its digital publishing from the existing rivals' products. The actions above the business need to go for the preliminary offering. The company ought to go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Although, the development of the publishing market is declining because 2008, showing a risk to the business's long term presence, but the circumstance can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.