Sand Hill Angels 2 Case Study Solution and Analysis
Sand Hill Angels 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing information and interaction services. Significant company sections of the company consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. Sand Hill Angels 2 Case Study Help has become a specialized details company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Sand Hill Angels 2 Case Study Help has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Sand Hill Angels 2 Case Study Analysis has certain strengths that can be made use of to decrease the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are offered 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 offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the company has certain weak points which might increase restraints for the business in implementing its development program. The weak points of Sand Hill Angels 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term development.
The development of the publishing market is decreasing considering that 2008, affecting Sand Hill Angels 2 Case Study Analysis as well, but the growth might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has presented certain threats to Sand Hill Angels 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Sand Hill Angels 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the client base.
The company has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be calculated. However, the overall monetary performance of the company might be evaluated by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Sand Hill Angels 2 Case Study Solution is growing and the company is rather effective in drawing in a a great deal of consumers at a potential rate.
Along with it, the 2nd chart which reveals the yearly growth in the Sand Hill Angels 2 Case Study Solution total properties, shows that the business is quite effective in including value to its possessions through its earnings. The growth in assets shows that the overall value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the circulation of overall revenues of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible growth to attain its future development goal.
PESTEL analysis could be conducted to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out useful materials and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Sand Hill Angels 2 Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer preferences.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces affecting Sand Hill Angels 2 Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled 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 ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on specific sites. The altering consumer choices towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence 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. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Sand Hill Angels 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 needs high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Sand Hill Angels 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Sand Hill Angels 2 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the company require an immediate option to prevent the decreasing industry development. Introduction of digital publishing might show to be an instant option with low amount of risk for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer need, the potential markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by considering a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.