The Changing Face Of Angel Investing Case Study Solution and Analysis
Introduction
The Changing Face Of Angel Investing Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; gathering information, processing details and communication services. Major organisation sectors of the business include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major items consist of books, regulars, online media, exhibitions, research reports etc. The Changing Face Of Angel Investing Case Study Analysis has actually ended up being a specialized info provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, The Changing Face Of Angel Investing Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Changing Face Of Angel Investing Case Study Help has specific strengths that can be used to lower the hazards, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Changing Face Of Angel Investing Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong financial position enables the business to consider numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase restraints for the company in implementing its advancement program. The weak points of The Changing Face Of Angel Investing Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting The Changing Face Of Angel Investing Case Study Analysis as well, but the development could be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented particular hazards to The Changing Face Of Angel Investing Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of The Changing Face Of Angel Investing Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. However, the overall monetary performance of the business might be analyzed by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of The Changing Face Of Angel Investing Case Study Solution is growing and the company is quite efficient in drawing in a large number of clients at a possible rate.
In addition to it, the second chart which reveals the annual development in the The Changing Face Of Angel Investing Case Study Solution total possessions, shows that the company is rather efficient in adding worth to its assets through its earnings. The growth in properties reveals that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the distribution of total profits of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated 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 particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Changing Face Of Angel Investing Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed 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. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into 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 files provided in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers 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 also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Changing Face Of Angel Investing Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Changing Face Of Angel Investing Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Changing Face Of Angel Investing Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing 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 organisation segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company 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 company need an instant service to prevent the declining market development. Therefore, intro of digital publishing could prove to be an immediate solution with low quantity of risk for the company. Nevertheless, the company could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially gathers the data connected to the consumer demand, the prospective markets, the government policies and the information related to the rivals presented in the market. After that, the business should choose one prospective sector for its initial offering. It needs to collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the company need to choose the initial offering. The business must go for the other markets if the initial offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a risk to the company's long term existence, but the scenario can be managed by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
