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Prairie Venture Limited Case Analysis

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Prairie Venture Limited Case Study Solution and Analysis


Intro

Prairie Venture Limited Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing details and communication services. Significant service sectors of the company include; books, regulars, consultancy and distribution. The business has a large item portfolio and its major products include books, regulars, online media, exhibitions, research reports and so on. Prairie Venture Limited Case Study Analysis has ended up being a specialized details company and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Important Problems

CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and Prairie Venture Limited Case Study Analysis in particular. These elements consist of;

• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
Executive Summary
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Prairie Venture Limited Case Study Help has certain strengths that can be made use of to reduce the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;

• The long term experience of Prairie Venture Limited Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong monetary position allows the business to consider several development opportunities with no worry of raising fund externally.

Weak points

In addition to the strengths, the business has specific weaknesses which might increase constraints for the company in implementing its development program. The weak points of Prairie Venture Limited Case Study Help are offered as follows;

• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to prevent its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing market is declining since 2008, affecting Prairie Venture Limited Case Study Analysis too, however the growth might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;

• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.

Dangers

The altering macro trends in the market and increasing competition in the publishing industry has posed certain hazards to Prairie Venture Limited Case Study Solution including;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Prairie Venture Limited Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competition increases the danger of losing the client base.

Monetary Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall incomes of Prairie Venture Limited Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in drawing in a large number of customers at a potential price.

In addition to it, the second chart which shows the annual growth in the Prairie Venture Limited Case Study Analysis overall properties, shows that the company is rather effective in including worth to its assets through its profits. The growth in assets reveals that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).

Another monetary analysis of the business utilizing the offered data could be the analysis concerning the distribution of total incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a prospective development to attain its future advancement objective.

PESTEL Analysis

PESTEL analysis could be performed to learn the various external forces impacting the performance 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 could have a significant impact on the mindset of individuals 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 Celebration of China. Therefore, it could be said that the overall political forces affecting Prairie Venture Limited Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.

Affordable.

Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.

Social and Demographical.

Social and demographical forces include the population growth, the consumer's choices towards checking out useful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Prairie Venture Limited Case Study Help. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.

Technological.

Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting Prairie Venture Limited Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's Five Forces Design).

Porter's 5 Forces Model could be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.

Risk of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.

Danger of Substitution.

Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the files provided in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the risk of alternative for the industry.

Competitive Rivalry.

Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant providers of the Prairie Venture Limited Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest 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 market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.

Rivals Analysis.

CMP runs in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Prairie Venture Limited 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 same duration, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a significant focus on instructional publications. CIP acts as a danger 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 marketplace share of Prairie Venture Limited Case Study Analysis quickly in the current market scenario.

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 regards to company scale. It is likewise one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.

Cons

• Competitors 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 business 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 suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market growth. Therefore, intro of digital publishing could prove to be an instant option with low quantity of threat for the business. Nevertheless, the business could likewise consider the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its product portfolio, the company ought to first collects the information related to the customer need, the possible markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing industry is declining considering that 2008, revealing a hazard to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.

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