Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Solution and Analysis
Intro
Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing info and interaction services. Major company sectors of the business include; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant products include books, regulars, online media, exhibitions, research reports etc. Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Help has become a specialized information supplier and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several 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 capabilities of the business could be utilized 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
Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Analysis has particular strengths that can be made use of to lower the threats, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position allows the business to think about several advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Solution too, but the development might be revived by availing particular chances presented in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has positioned specific threats to Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total incomes of Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Help total properties, shows that the business is quite efficient in adding value to its properties through its revenues. The development in assets shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis regarding the distribution of overall revenues of the business. 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 company could move towards other organisation segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative products etc. China has the greatest population worldwide with a high population growth, showing the increasing number of consumers of the Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Solution. However, the customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should 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 initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards 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 market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence 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 participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Shelley Capital And The Hedge Fund Secondary Market 2 Case Study Analysis include;.
• Chemical Market 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate option to avoid the decreasing market growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to first collects the information related to the consumer demand, the prospective markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a hazard to the company's long term existence, but the situation can be managed by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
