The Changing Face Of Angel Investing 2 Case Study Solution and Analysis
Introduction
The Changing Face Of Angel Investing 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering details, processing information and communication services. Significant company sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant products include books, regulars, online media, exhibitions, research reports etc. The Changing Face Of Angel Investing 2 Case Study Solution has ended up being a specialized details company and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Changing Face Of Angel Investing 2 Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous questions 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 company could be made use of 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 Changing Face Of Angel Investing 2 Case Study Help has particular strengths that can be used to lower the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Changing Face Of Angel Investing 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position permits the business to think about numerous development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in executing its advancement program. The weaknesses of The Changing Face Of Angel Investing 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting The Changing Face Of Angel Investing 2 Case Study Analysis as well, but the development might be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually presented certain dangers to The Changing Face Of Angel Investing 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of The Changing Face Of Angel Investing 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number 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 utilizing particular techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be calculated. The total financial efficiency of the company could be analyzed by using the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of The Changing Face Of Angel Investing 2 Case Study Solution is growing and the company is rather effective in bring in a large number of consumers at a prospective cost.
Together with it, the second chart which shows the annual growth in the The Changing Face Of Angel Investing 2 Case Study Solution overall assets, reveals that the company is rather efficient in including worth to its possessions through its earnings. The development in assets reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the circulation of overall earnings of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP organisation 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 general and the The Changing Face Of Angel Investing 2 Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books impact the total business at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out helpful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the The Changing Face Of Angel Investing 2 Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Changing Face Of Angel Investing 2 Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the virtual libraries on specific websites. The changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Changing Face Of Angel Investing 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Changing Face Of Angel Investing 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a significant concentrate on educational publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Changing Face Of Angel Investing 2 Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the declining market growth. Introduction of digital publishing could prove to be an instant option with low quantity of danger for the business. Nevertheless, the company might likewise consider the growth 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 related to the customer need, the prospective markets, the government regulations and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a hazard to the business's long term presence, however the circumstance can be controlled by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
