Shelley Capital And The Hedge Fund Secondary Market Case Study Solution and Analysis
Introduction
Shelley Capital And The Hedge Fund Secondary Market Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and Shelley Capital And The Hedge Fund Secondary Market Case Study Help in particular. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised a number of questions 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 abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Shelley Capital And The Hedge Fund Secondary Market Case Study Help has certain strengths that can be utilized to decrease the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Shelley Capital And The Hedge Fund Secondary Market Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong monetary position permits the business to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Shelley Capital And The Hedge Fund Secondary Market Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, affecting Shelley Capital And The Hedge Fund Secondary Market Case Study Help as well, however the development could be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has postured certain hazards to Shelley Capital And The Hedge Fund Secondary Market Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Shelley Capital And The Hedge Fund Secondary Market Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors 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 techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be calculated. However, the overall financial performance of the company could be examined by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Shelley Capital And The Hedge Fund Secondary Market Case Study Help is growing and the company is rather efficient in bring in a large number of consumers at a prospective price.
Along with it, the 2nd graph which shows the yearly growth in the Shelley Capital And The Hedge Fund Secondary Market Case Study Analysis overall assets, shows that the business is quite effective in including value to its assets through its profits. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the distribution of overall revenues of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces impacting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative materials and so on. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Shelley Capital And The Hedge Fund Secondary Market Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Shelley Capital And The Hedge Fund Secondary Market Case Study Analysis consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Shelley Capital And The Hedge Fund Secondary Market Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Shelley Capital And The Hedge Fund Secondary Market Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the existing 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 also among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing market development. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to first collects the information related to the customer demand, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
