Puretech Ventures In 2011 Case Study Solution and Analysis
Introduction
Puretech Ventures In 2011 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing info and interaction services. Major organisation segments of the company include; books, regulars, consultancy and circulation. The business has a large item portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. Puretech Ventures In 2011 Case Study Help has ended up being a specialized info company and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and Puretech Ventures In 2011 Case Study Help in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Puretech Ventures In 2011 Case Study Analysis has particular strengths that can be utilized to minimize the threats, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Puretech Ventures In 2011 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the business to consider several development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Puretech Ventures In 2011 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, 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 growth. It needs to propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Puretech Ventures In 2011 Case Study Help too, but the development could be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has positioned particular risks to Puretech Ventures In 2011 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Puretech Ventures In 2011 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. Nevertheless, the general financial efficiency of the company might be examined by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Puretech Ventures In 2011 Case Study Analysis is growing and the company is quite efficient in drawing in a a great deal of consumers at a possible price.
Together with it, the 2nd graph which shows the yearly development in the Puretech Ventures In 2011 Case Study Help overall properties, reveals that the company is rather efficient in including value to its properties through its revenues. The development in properties reveals that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the distribution of total revenues of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Puretech Ventures In 2011 Case Study Help company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Puretech Ventures In 2011 Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the general organisation at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Puretech Ventures In 2011 Case Study Help 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 non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Puretech Ventures In 2011 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Puretech Ventures In 2011 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Puretech Ventures In 2011 Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing 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 focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. The company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the data connected to the consumer need, the prospective markets, the government regulations and the information connected to the rivals provided in the market. After that, the business needs to decide one prospective segment for its initial offering. It should gather research study that how it could separate its digital publishing from the existing competitors' items. The steps above the business need to go for the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, revealing a danger to the company's long term existence, but the situation can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
