Taking Private Equity Public The Blackstone Group Case Study Solution and Analysis
Intro
Taking Private Equity Public The Blackstone Group Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Taking Private Equity Public The Blackstone Group Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Taking Private Equity Public The Blackstone Group Case Study Solution has certain strengths that can be used to lower the threats, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Taking Private Equity Public The Blackstone Group Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position enables the company to think about a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Taking Private Equity Public The Blackstone Group Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, impacting Taking Private Equity Public The Blackstone Group Case Study Help also, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has positioned particular risks to Taking Private Equity Public The Blackstone Group Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Taking Private Equity Public The Blackstone Group Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be computed. Nevertheless, the total monetary efficiency of the company could be examined by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Taking Private Equity Public The Blackstone Group Case Study Help is growing and the company is quite efficient in drawing in a large number of clients at a possible rate.
Together with it, the second chart which reveals the annual development in the Taking Private Equity Public The Blackstone Group Case Study Help overall properties, reveals that the business is rather efficient in including value to its possessions through its revenues. The development in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the circulation of overall revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Taking Private Equity Public The Blackstone Group Case Study Analysis company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Taking Private Equity Public The Blackstone Group Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the digital libraries on specific websites. The changing customer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Taking Private Equity Public The Blackstone Group Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Taking Private Equity Public The Blackstone Group Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in numerous market sectors, with a major concentrate on educational publications. CIP serves 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 could wean the marketplace share of Taking Private Equity Public The Blackstone Group Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor 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 service scale. It is also one of the prominent gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate service to avoid the decreasing market growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially gathers the information related to the consumer demand, the possible markets, the federal government policies and the data connected to the competitors presented in the market. After that, the company should choose one prospective segment for its preliminary offering. It must collect research study that how it might distinguish its digital publishing from the existing competitors' products. The steps above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the company needs to choose the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a risk to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
