The Abraaj Group Making Of A Global Private Equity Firm Case Study Solution and Analysis
Introduction
The Abraaj Group Making Of A Global Private Equity Firm Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing details and interaction services. Major organisation segments of the company consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant products include books, regulars, online media, exhibits, research reports etc. The Abraaj Group Making Of A Global Private Equity Firm Case Study Solution has actually become a specialized details supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Abraaj Group Making Of A Global Private Equity Firm Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities 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
The Abraaj Group Making Of A Global Private Equity Firm Case Study Help has certain strengths that can be made use of to reduce the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Abraaj Group Making Of A Global Private Equity Firm Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong monetary position permits the business to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restraints for the business in implementing its development program. The weak points of The Abraaj Group Making Of A Global Private Equity Firm Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting The Abraaj Group Making Of A Global Private Equity Firm Case Study Help as well, but the development could be revived by availing certain chances presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has postured particular hazards to The Abraaj Group Making Of A Global Private Equity Firm Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of The Abraaj Group Making Of A Global Private Equity Firm Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market together with presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be calculated. The overall monetary performance of the business could be evaluated by utilizing the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of The Abraaj Group Making Of A Global Private Equity Firm Case Study Solution is growing and the business is quite effective in attracting a a great deal of customers at a potential cost.
Along with it, the second chart which reveals the annual development in the The Abraaj Group Making Of A Global Private Equity Firm Case Study Solution overall assets, reveals that the business is quite efficient in including value to its properties through its revenues. The development in assets shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the distribution of total profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting The Abraaj Group Making Of A Global Private Equity Firm Case Study Analysis organisation 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 general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products etc. China has the highest population in the world with a high population development, revealing the increasing number of consumers of the The Abraaj Group Making Of A Global Private Equity Firm Case Study Analysis. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting The Abraaj Group Making Of A Global Private Equity Firm Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the virtual libraries on particular sites. The altering consumer choices towards digital knowing increase the danger of replacement for the industry.
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 competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Abraaj Group Making Of A Global Private Equity Firm Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Abraaj Group Making Of A Global Private Equity Firm Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sectors, with a major focus on instructional publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of The Abraaj Group Making Of A Global Private Equity Firm Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item 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 company segments to the brand-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 company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an immediate solution to prevent the declining industry development. Therefore, introduction of digital publishing could prove to be an instant service with low amount of danger for the business. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first collects the data related to the customer demand, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
