Silicon Valley Bank The On Call Associates Program Case Study Solution and Analysis
Intro
Silicon Valley Bank The On Call Associates Program Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and Silicon Valley Bank The On Call Associates Program Case Study Analysis in specific. These factors consist of;
• Entrance of the new publishing companies in the market.
• 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Silicon Valley Bank The On Call Associates Program Case Study Help has certain strengths that can be made use of to lower the dangers, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Silicon Valley Bank The On Call Associates Program Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the business to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Silicon Valley Bank The On Call Associates Program Case Study Solution are offered as follows;
• Despite of being a science and technology 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 needs to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, impacting Silicon Valley Bank The On Call Associates Program Case Study Analysis as well, but the growth might be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has postured specific risks to Silicon Valley Bank The On Call Associates Program Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Silicon Valley Bank The On Call Associates Program Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry along with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly overall earnings of Silicon Valley Bank The On Call Associates Program Case Study Solution 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 big number of customers at a possible rate.
Together with it, the second chart which reveals the annual development in the Silicon Valley Bank The On Call Associates Program Case Study Solution total assets, reveals that the business is rather effective in adding value to its possessions through its revenues. The development in assets shows that the total value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the circulation of total earnings of the business. Huge part of the earnings 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 service sectors with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the general political forces impacting Silicon Valley Bank The On Call Associates Program Case Study Help organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Silicon Valley Bank The On Call Associates Program Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the general business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Silicon Valley Bank The On Call Associates Program Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal 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 Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Silicon Valley Bank The On Call Associates Program Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Silicon Valley Bank The On Call Associates Program Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate option to prevent the decreasing industry development. The company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information related to the customer need, the potential markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
