Summit Partners The Fleetcor Investment 2 Case Study Solution and Analysis
Introduction
Summit Partners The Fleetcor Investment 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Summit Partners The Fleetcor Investment 2 Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 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
Summit Partners The Fleetcor Investment 2 Case Study Solution has particular strengths that can be made use of to decrease the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Summit Partners The Fleetcor Investment 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position enables the company to consider numerous advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Summit Partners The Fleetcor Investment 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining because 2008, affecting Summit Partners The Fleetcor Investment 2 Case Study Analysis as well, but the development might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually posed certain risks to Summit Partners The Fleetcor Investment 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Summit Partners The Fleetcor Investment 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. However, the general monetary efficiency of the company might be analyzed by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Summit Partners The Fleetcor Investment 2 Case Study Help is growing and the business is quite efficient in bring in a large number of clients at a possible rate.
In addition to it, the second graph which shows the annual growth in the Summit Partners The Fleetcor Investment 2 Case Study Help total assets, reveals that the business is rather efficient in including worth to its properties through its earnings. The growth in assets reveals that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis regarding the circulation of overall 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 business could move towards other business segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the company and the recent trends 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 might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Summit Partners The Fleetcor Investment 2 Case Study Help business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Summit Partners The Fleetcor Investment 2 Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the financial policies related to the import of books impact the general service at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Summit Partners The Fleetcor Investment 2 Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to 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 approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence 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 participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Summit Partners The Fleetcor Investment 2 Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Summit Partners The Fleetcor Investment 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a significant focus on instructional publications. CIP serves 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 could wean the market share of Summit Partners The Fleetcor Investment 2 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Summit Partners The Fleetcor Investment 2 Case Study Solution and CIP. It is likewise one of 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
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate option to prevent the declining industry growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the data related to the consumer demand, the potential markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a threat to the company's long term existence, however the scenario can be managed by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
