Steel Partners Hedge Fund Activism In Japan Case Study Solution and Analysis
Intro
Steel Partners Hedge Fund Activism In Japan 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 provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, Steel Partners Hedge Fund Activism In Japan Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing market in general and CMP in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Steel Partners Hedge Fund Activism In Japan Case Study Analysis has particular strengths that can be made use of to decrease the dangers, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Steel Partners Hedge Fund Activism In Japan Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position allows the business to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Steel Partners Hedge Fund Activism In Japan Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Steel Partners Hedge Fund Activism In Japan Case Study Analysis as well, however the growth might be restored by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise 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 growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific threats to Steel Partners Hedge Fund Activism In Japan Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Steel Partners Hedge Fund Activism In Japan Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. Nevertheless, the total monetary performance of the business might be evaluated by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Steel Partners Hedge Fund Activism In Japan Case Study Analysis is growing and the business is quite efficient in attracting a large number of clients at a prospective cost.
Together with it, the second chart which reveals the yearly development in the Steel Partners Hedge Fund Activism In Japan Case Study Help overall properties, reveals that the business is rather effective in adding worth to its properties through its profits. The development in assets shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis regarding the distribution of total earnings of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces impacting Steel Partners Hedge Fund Activism In Japan Case Study Solution business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Steel Partners Hedge Fund Activism In Japan Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the general organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Steel Partners Hedge Fund Activism In Japan Case Study Analysis consists of the concerns of environmental communities 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 harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Steel Partners Hedge Fund Activism In Japan Case Study Analysis consist of the providers of the paper for publishing 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 Buyer.
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 files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Steel Partners Hedge Fund Activism In Japan Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a major focus on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Steel Partners Hedge Fund Activism In Japan Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Steel Partners Hedge Fund Activism In Japan Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an immediate service to avoid the decreasing market development. Therefore, intro of digital publishing could show to be an immediate service with low quantity of threat for the company. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should initially gathers the information connected to the customer demand, the potential markets, the government guidelines and the information related to the competitors provided in the market. After that, the business must choose one potential segment for its initial offering. It ought to collect research that how it could separate its digital publishing from the existing rivals' products. After all the actions above the company must go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
