Sand Hill Angels 2 Case Study Solution and Analysis
Intro
Sand Hill Angels 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and Sand Hill Angels 2 Case Study Solution in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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 abilities of the company could be made use of 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
Sand Hill Angels 2 Case Study Help has specific strengths that can be made use of to reduce the risks, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Sand Hill Angels 2 Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position permits the business to consider several advancement chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Sand Hill Angels 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Sand Hill Angels 2 Case Study Analysis as well, but the growth could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed certain risks to Sand Hill Angels 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Sand Hill Angels 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total profits of Sand Hill Angels 2 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather effective in attracting a large number of customers at a possible price.
Together with it, the 2nd graph which reveals the annual growth in the Sand Hill Angels 2 Case Study Help overall possessions, shows that the company is rather efficient in including worth to its possessions through its profits. The growth in properties shows that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the provided data could be the analysis regarding the circulation of overall profits of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the performance of the business and the recent 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 influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Sand Hill Angels 2 Case Study Analysis consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful 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 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files provided in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Sand Hill Angels 2 Case Study Help consist of the suppliers of the paper for publishing files. 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 Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Sand Hill Angels 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Sand Hill Angels 2 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 service sectors to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an instant solution to avoid the decreasing market development. Introduction of digital publishing could prove to be an immediate solution with low quantity of danger for the business. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the data related to the consumer need, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a hazard to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
