The Blackstone Groups Ipo Chinese Version Case Study Solution and Analysis
Introduction
The Blackstone Groups Ipo Chinese Version Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing information and communication services. Significant company sectors of the business include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. The Blackstone Groups Ipo Chinese Version Case Study Help has ended up being a specialized info provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Blackstone Groups Ipo Chinese Version Case Study Help has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Blackstone Groups Ipo Chinese Version Case Study Analysis has specific strengths that can be made use of to decrease the hazards, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Blackstone Groups Ipo Chinese Version Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position allows the company to consider several development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of The Blackstone Groups Ipo Chinese Version Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting The Blackstone Groups Ipo Chinese Version Case Study Solution too, but the growth might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has positioned particular threats to The Blackstone Groups Ipo Chinese Version Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The Blackstone Groups Ipo Chinese Version Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly total revenues of The Blackstone Groups Ipo Chinese Version Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is quite efficient in attracting a large number of customers at a possible cost.
In addition to it, the second chart which reveals the annual development in the The Blackstone Groups Ipo Chinese Version Case Study Help total properties, reveals that the company is rather efficient in including worth to its possessions through its earnings. The development in assets shows that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data could be the analysis concerning the circulation of total earnings of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the performance of the company and the current trends 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 might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting The Blackstone Groups Ipo Chinese Version Case Study Help service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need 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 satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Blackstone Groups Ipo Chinese Version Case Study Help consists of the concerns 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market 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 big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on 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 major suppliers of the The Blackstone Groups Ipo Chinese Version Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 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 industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Blackstone Groups Ipo Chinese Version Case Study Help include;.
• 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 present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as The Blackstone Groups Ipo Chinese Version Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an instant option to avoid the declining market development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the customer need, the possible markets, the federal government guidelines and the information related to the rivals provided in the market. After that, the company needs to decide one prospective segment for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the company ought to go for the preliminary offering. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, showing a threat to the business's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
