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Taking Private Equity Public The Blackstone Group Case Analysis

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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 highest market share in the China's book retail market. CMP has actually become a specialized details company and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.

Important Concerns

Although, Taking Private Equity Public The Blackstone Group Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing market in basic and CMP in particular. These aspects consist of;

• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
Executive Summary
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 valuable experience, technical resources and the abilities of the business could be used to strive for the future development 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 Help has particular strengths that can be used to lower the threats, conquer the weak point and avail 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 enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position allows the business to consider numerous development opportunities with no fear of raising fund externally.

Weaknesses

Together with the strengths, the business has specific weak points which could increase restrictions for the company in executing 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 suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is decreasing considering that 2008, affecting Taking Private Equity Public The Blackstone Group Case Study Analysis as well, however the growth might be revived by availing certain chances provided in the market. The market opportunities for CMP consist of;

• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.

Risks

The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned certain threats to Taking Private Equity Public The Blackstone Group Case Study Analysis consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Taking Private Equity Public The Blackstone Group Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the customer base.

Financial Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total earnings of Taking Private Equity Public The Blackstone Group Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in attracting a large number of clients at a potential rate.

In addition to it, the 2nd graph which reveals the annual development in the Taking Private Equity Public The Blackstone Group Case Study Analysis overall assets, reveals that the company is quite effective in including value to its properties through its incomes. The growth in properties shows that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).

Another financial analysis of the business using the offered information might be the analysis relating to the distribution of overall revenues of the company. Huge 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 sections with a potential growth to accomplish its future development goal.

PESTEL Analysis

PESTEL analysis could be performed to learn the various external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Taking Private Equity Public The Blackstone Group Case Study Solution service are high. The government policies concerning the publishing sector are also increasing with the passage of time.

Affordable.

Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market.

Social and Demographical.

The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.

Technological.

Technological forces impacting the CMP include the technological development in the reading methods etc. Improvement of science and technology along with the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Taking Private Equity Public The Blackstone Group Case Study Solution consists of the issues of ecological communities over the use 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 hazardous for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.

Market Analysis (Porter's 5 Forces Design).

Porter's 5 Forces Model could be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.

Risk of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.

Risk of Alternative.

Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the documents presented in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of alternative for the market.

Competitive Rivalry.

Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The significant providers of the Taking Private Equity Public The Blackstone Group Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Bargaining 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 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 greatest market share in the Chinese publishing market. Significant rivals of Taking Private Equity Public The Blackstone Group Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts as a threat 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 existing market situation.

Posts and telecommunication Press (PTP).

It was likewise established in the exact same period as Taking Private Equity Public The Blackstone Group Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value 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 need of its products in the market.

Suggestions

With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an immediate service to prevent the decreasing market development. Introduction of digital publishing could show to be an immediate option with low amount of threat for the company. The company could also consider the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its item portfolio, the business ought to first gathers the information related to the customer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing market is declining since 2008, revealing a hazard to the business's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.

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