Prairie Venture Limited Case Study Solution and Analysis
Introduction
Prairie Venture Limited Case Study Solution is the largest publishing company 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 interaction services. Major service sections of the company consist of; books, regulars, consultancy and distribution. The company has a large item portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports etc. Prairie Venture Limited Case Study Help has ended up being a specialized information company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Prairie Venture Limited Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement 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 important experience, technical resources and the capabilities of the company could be utilized to strive for the future development 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 Analysis has specific strengths that can be made use of to decrease the threats, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Prairie Venture Limited Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to think about numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restrictions for the company in implementing its development program. The weak points of Prairie Venture Limited Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting Prairie Venture Limited Case Study Help also, however the growth could be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has presented specific hazards to Prairie Venture Limited Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Prairie Venture Limited Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly overall incomes of Prairie Venture Limited Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a big number of clients at a prospective rate.
In addition to it, the second chart which shows the annual development in the Prairie Venture Limited Case Study Help overall assets, reveals that the business is rather efficient in including value to its possessions through its profits. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the circulation of total earnings of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting Prairie Venture Limited Case Study Help organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading useful materials and so on. China has the greatest population in the world with a high population growth, showing the increasing variety of consumers of the Prairie Venture Limited Case Study Analysis. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Prairie Venture Limited Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Prairie Venture Limited Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence 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. Major competitors of Prairie Venture Limited Case Study Help include;.
• Chemical Market 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 releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market segments, with a significant focus on instructional publications. CIP serves as a hazard 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 Prairie Venture Limited Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Prairie Venture Limited Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 company sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant solution to prevent the declining industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should initially gathers the information related to the customer demand, the possible markets, the government guidelines and the data related to the competitors presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, showing a risk to the business's long term presence, but the situation can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
