The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Solution and Analysis
Introduction
The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing information and interaction services. Major service sectors of the company consist of; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis has ended up being a specialized information provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Solution has particular strengths that can be made use of to decrease the hazards, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the company to consider several development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Solution as well, however the development could be revived by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain risks to The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm 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 specific techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. Nevertheless, the general monetary performance of the business might be analyzed by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis is growing and the company is quite efficient in bring in a a great deal of clients at a possible cost.
Along with it, the 2nd graph which reveals the yearly growth in the The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis overall assets, shows that the business is quite effective in including worth to its possessions through its revenues. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the offered information might be the analysis concerning the circulation of total earnings of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Analysis service are high. The government policies concerning the publishing sector are likewise 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 overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations 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.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Carlyle Group Ipo Of A Publicly Traded Private Equity Firm Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an instant service to avoid the decreasing industry growth. Therefore, intro of digital publishing might show to be an immediate solution with low quantity of risk for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first gathers the information related to the consumer demand, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a danger to the business's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
