Sand Hill Angels Case Study Solution and Analysis
Intro
Sand Hill Angels Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Sand Hill Angels Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business 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
Sand Hill Angels Case Study Solution has particular strengths that can be made use of to decrease the threats, conquer the weak point and get the opportunities. 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 enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the company to consider numerous development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase constraints for the business in executing its development program. The weak points of Sand Hill Angels Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Sand Hill Angels Case Study Analysis as well, but the development might be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned certain hazards to Sand Hill Angels Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Sand Hill Angels Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry together with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be computed. However, the general financial performance of the business might be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Sand Hill Angels Case Study Solution is growing and the company is quite effective in drawing in a large number of customers at a potential rate.
Together with it, the 2nd graph which reveals the yearly growth in the Sand Hill Angels Case Study Analysis overall assets, shows that the business is rather efficient in including worth to its properties through its earnings. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the distribution of overall incomes of the company. Major part of the profits 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 organisation sectors with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Sand Hill Angels Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market. Together with it, the financial policies connected to the import of books impact the general organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Sand Hill Angels Case Study Solution includes the issues of environmental communities 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 utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the virtual libraries on specific sites. The altering consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Sand Hill Angels Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Sand Hill Angels Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in different market segments, with a major focus on educational publications. CIP serves as a risk 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 Sand Hill Angels Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments 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 immediate service to prevent the decreasing industry growth. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to first collects the information connected to the customer need, the prospective markets, the federal government guidelines and the data related to the competitors provided in the market. After that, the company should decide one possible segment for its preliminary offering. It must collect research study that how it might differentiate its digital publishing from the existing competitors' products. The steps above the company need to go for the initial offering. If the initial offering proves a success, the business should choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a risk to the business's long term presence, however the circumstance can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
