Radio One Inc Merger Acquisition Case Study Solution and Analysis
Intro
Radio One Inc Merger Acquisition Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and Radio One Inc Merger Acquisition Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Radio One Inc Merger Acquisition Case Study Solution has certain strengths that can be utilized to lower the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Radio One Inc Merger Acquisition Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong monetary position allows the business to consider numerous advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Radio One Inc Merger Acquisition Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Radio One Inc Merger Acquisition Case Study Analysis as well, however the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company might likewise present 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 decrease its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured certain hazards to Radio One Inc Merger Acquisition Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Radio One Inc Merger Acquisition Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be calculated. Nevertheless, the total financial performance of the company could be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Radio One Inc Merger Acquisition Case Study Solution is growing and the business is rather efficient in drawing in a large number of consumers at a prospective price.
In addition to it, the second graph which shows the annual growth in the Radio One Inc Merger Acquisition Case Study Help overall properties, reveals that the company is rather efficient in adding worth to its properties through its profits. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis concerning the circulation of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful products etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Radio One Inc Merger Acquisition Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Radio One Inc Merger Acquisition Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on particular websites. The changing customer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Radio One Inc Merger Acquisition Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Radio One Inc Merger Acquisition Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks third and second in various market segments, with a major concentrate on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Radio One Inc Merger Acquisition Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing industry with a yearly 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 Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company 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 achieve its future advancement. As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry growth. Intro of digital publishing might prove to be an immediate solution with low amount of risk for the business. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially collects the information related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the company needs to decide one possible section for its preliminary offering. It needs to collect research that how it could distinguish its digital publishing from the existing competitors' items. After all the steps above the business should go for the preliminary offering. If the preliminary offering proves a success, the business needs to choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a hazard to the company's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
