Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Solution and Analysis
Introduction
Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns 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 abilities of the business could be used 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
Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Help has certain strengths that can be used to decrease the threats, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong financial position permits the business to consider several advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restrictions for the business in executing its advancement program. The weaknesses of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Help also, however the development might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using 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 lower its reliance over Chinese markets by using its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has positioned specific hazards to Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly overall revenues of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite efficient in bring in a large number of clients at a prospective cost.
Together with it, the second chart which reveals the annual development in the Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Analysis total assets, reveals that the business is rather efficient in including value to its properties through its incomes. The development in assets reveals that the total value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis regarding the circulation of total incomes of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative products and so on. China has the highest population on the planet with a high population growth, showing the increasing number of customers of the Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the virtual libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Analysis consist of the providers of the paper for publishing files. 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 buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 organisation sections to the 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 company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate service to avoid the decreasing industry development. Intro of digital publishing might show to be an instant service with low amount of threat for the company. Nevertheless, the company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to first collects the information associated with the consumer demand, the possible markets, the federal government regulations and the information associated with the rivals presented in the market. After that, the business must decide one potential section for its preliminary offering. It should collect research that how it might differentiate its digital publishing from the existing rivals' products. After all the steps above the company should opt for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a threat to the business's long term presence, but the situation can be managed by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
