Sand Hill Angels Case Study Solution and Analysis
Introduction
Sand Hill Angels Case Study Analysis 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 service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and Sand Hill Angels Case Study Solution in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change 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 used 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
Sand Hill Angels Case Study Solution has particular strengths that can be utilized to reduce the risks, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Sand Hill Angels Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer 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 enables the company to consider a number of advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of Sand Hill Angels Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Sand Hill Angels Case Study Help as well, however the development could be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured specific hazards to Sand Hill Angels Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Sand Hill Angels Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total profits of Sand Hill Angels Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather effective in attracting a big number of customers at a possible price.
Along with it, the second graph which reveals the yearly development in the Sand Hill Angels Case Study Help total assets, reveals that the business is rather efficient in adding worth to its properties through its profits. The development in properties shows that the total value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis relating to the circulation of overall earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Sand Hill Angels Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the total company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Sand Hill Angels Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology along with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Sand Hill Angels Case Study Solution consists of the issues of ecological neighborhoods over the use 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 must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Sand Hill Angels Case Study Analysis consist of the providers of the paper for releasing 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 a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sand Hill Angels Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a major concentrate on educational publications. CIP serves as a danger 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 Sand Hill Angels Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Sand Hill Angels Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 company sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an instant option to avoid the decreasing market growth. Introduction of digital publishing could show to be an instant option with low quantity of danger for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first collects the data related to the customer demand, the prospective markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term existence, but the circumstance can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
