Selling A New Old Idea Virginia Business Ventures 2 Case Study Solution and Analysis
Introduction
Selling A New Old Idea Virginia Business Ventures 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become 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.
Important Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and Selling A New Old Idea Virginia Business Ventures 2 Case Study Help in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Selling A New Old Idea Virginia Business Ventures 2 Case Study Solution has particular strengths that can be made use of to decrease the risks, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Selling A New Old Idea Virginia Business Ventures 2 Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position allows the company to consider numerous development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase constraints for the company in implementing its development program. The weaknesses of Selling A New Old Idea Virginia Business Ventures 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional 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 specific growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Selling A New Old Idea Virginia Business Ventures 2 Case Study Analysis too, but the development could be revived by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned specific risks to Selling A New Old Idea Virginia Business Ventures 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Selling A New Old Idea Virginia Business Ventures 2 Case Study Help 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 utilizing specific strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly total incomes of Selling A New Old Idea Virginia Business Ventures 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is rather effective in bring in a large number of clients at a potential price.
In addition to it, the second chart which shows the yearly growth in the Selling A New Old Idea Virginia Business Ventures 2 Case Study Analysis overall properties, reveals that the business is rather efficient in adding worth to its properties through its profits. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of overall earnings of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Selling A New Old Idea Virginia Business Ventures 2 Case Study Solution company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products and so on. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Selling A New Old Idea Virginia Business Ventures 2 Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Selling A New Old Idea Virginia Business Ventures 2 Case Study Analysis consists of the concerns of environmental communities over the usage 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 should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents presented in the virtual libraries on specific websites. The changing consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Selling A New Old Idea Virginia Business Ventures 2 Case Study Analysis include the providers of the paper for releasing files. 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 existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Selling A New Old Idea Virginia Business Ventures 2 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 very same duration, CIP publishes comparable kind of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in numerous market sections, with a major focus on instructional publications. CIP functions 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 might wean the marketplace share of Selling A New Old Idea Virginia Business Ventures 2 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Selling A New Old Idea Virginia Business Ventures 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition 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 company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market development. The business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to first collects the information related to the customer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, revealing a danger to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
