Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Solution and Analysis
Intro
Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing info and communication services. Significant service segments of the company consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports etc. Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Analysis has actually become a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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
Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Solution has certain strengths that can be made use of to reduce the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong monetary position enables the company to think about several development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Help as well, but the development might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned particular dangers to Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors 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 utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly total incomes of Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Analysis during 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 quite efficient in attracting a large number of consumers at a possible rate.
Together with it, the second graph which reveals the yearly growth in the Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Analysis overall properties, reveals that the business is quite effective in including value to its properties through its profits. The development in assets reveals that the total value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered information could be the analysis regarding the circulation of total incomes of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of the people 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 stated that the total political forces affecting Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Help organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the financial policies associated with the import of books impact the overall business at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations 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 requires the publishers to be approved first by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents provided in the virtual libraries on particular sites. The changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Secondmarket Providing Liquidity For Shareholders Of Privately Held Icontact Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-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 together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate service to prevent the decreasing market development. Therefore, introduction of digital publishing might show to be an immediate option with low quantity of risk for the company. However, the company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information related to the consumer need, the potential markets, the government regulations and the data related to the competitors provided in the market. After that, the company needs to choose one potential sector for its initial offering. It should gather research that how it might separate its digital publishing from the existing competitors' items. The steps above the business ought to go for the initial offering. The company must go for the other markets if the initial offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a risk to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
