Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution and Analysis
Intro
Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Analysis in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Analysis has certain strengths that can be utilized to lower the threats, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position permits the business to think about several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the business in implementing its development program. The weak points of Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution too, however the growth could be revived by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce 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 reduce its reliance over Chinese markets by utilizing its huge funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has presented specific threats to Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance 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 threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly overall incomes of Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a big number of consumers at a potential cost.
Together with it, the 2nd graph which reveals the annual development in the Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Analysis total assets, shows that the business is quite efficient in including worth to its assets through its profits. The growth in possessions reveals that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered information might be the analysis regarding the distribution of overall revenues of the company. 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 business could move towards other company segments with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous 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 business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Help in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the overall service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer 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 preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution consists of the issues of environmental neighborhoods over the usage 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 damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in different market sections, with a major focus on academic publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Rufus Rivers And Career Choices In Private Equity And Venture Capital Finance Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor 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 terms of business scale. It is likewise among the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the decreasing industry growth. The business could 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 must first collects the data related to the customer demand, the possible markets, the federal government guidelines and the data connected to the rivals presented in the market. After that, the business should choose one possible section for its preliminary offering. It needs to gather research that how it could distinguish its digital publishing from the existing competitors' products. After all the steps above the business should choose the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a threat to the business's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
