Silver Lake Case Study Solution and Analysis
Introduction
Silver Lake Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Silver Lake Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
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 scenario? 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
Silver Lake Case Study Solution has specific strengths that can be made use of to reduce the dangers, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Silver Lake Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position allows the business to consider several development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase constraints for the company in implementing its development program. The weak points of Silver Lake Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting Silver Lake Case Study Help as well, however the growth could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has posed specific threats to Silver Lake Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Silver Lake Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry along with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. Nevertheless, the general monetary performance of the company could be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Silver Lake Case Study Analysis 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 chart which reveals the yearly growth in the Silver Lake Case Study Analysis total properties, shows that the business is rather efficient in adding worth to its assets through its revenues. The development in properties shows that the total value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the circulation of total earnings of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting Silver Lake Case Study Analysis company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Silver Lake Case Study Solution consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers 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 participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Silver Lake Case Study Analysis 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 Buyer.
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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Silver Lake Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Silver Lake Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product 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 service sections to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant service to prevent the decreasing industry growth. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the data related to the customer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the company needs to choose one prospective segment for its preliminary offering. It must collect research study that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the business ought to go for the initial offering. If the preliminary offering shows a success, the business should go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
