Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution and Analysis
Intro
Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Analysis in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous 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 capabilities of the company could be used to pursue 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 Case Study Solution has particular strengths that can be used to decrease the hazards, conquer the weak point and avail the chances. 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 Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position enables the company to consider numerous development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which could increase restraints for the company in executing its development program. The weaknesses of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, impacting Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution also, but the growth might be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented particular threats to Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly total profits of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in bring in a large number of clients at a potential cost.
In addition to it, the 2nd chart which shows the yearly growth in the Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution overall properties, shows that the business is rather efficient in adding value to its possessions through its incomes. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis relating to the circulation of overall earnings of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative materials and so on. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files provided in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Technical Note No Assets No Products No Business Plan Risks Associated With Special Purpose Acquisition Companies Case Study Help and CIP. 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
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an instant service to avoid the decreasing market development. Introduction of digital publishing could prove to be an immediate option with low amount of danger for the business. Nevertheless, the business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to initially gathers the information connected to the customer demand, the prospective markets, the federal government policies and the data related to the competitors presented in the market. After that, the company ought to choose one possible section for its initial offering. It must collect research that how it might distinguish its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. If the initial offering shows a success, the company should opt for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a danger to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
