The Changing Face Of Angel Investing Case Study Solution and Analysis
Intro
The Changing Face Of Angel Investing Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, The Changing Face Of Angel Investing Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 valuable experience, technical resources and the capabilities of the business could be used 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 Changing Face Of Angel Investing Case Study Help has specific strengths that can be used to decrease the risks, 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 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the business to think about numerous advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase constraints for the company in executing its development program. The weak points of The Changing Face Of Angel Investing Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting The Changing Face Of Angel Investing Case Study Analysis also, however the growth could be revived by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually positioned certain hazards to The Changing Face Of Angel Investing Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of The Changing Face Of Angel Investing Case Study Help due to the consumer shift towards digital libraries.
• The presence 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 get a strong customer base by utilizing certain methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be computed. The general monetary performance of the business might be analyzed by using the charts provided in the case Appendices. It might be analyzed from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of The Changing Face Of Angel Investing Case Study Help is growing and the business is rather efficient in attracting a large number of consumers at a possible rate.
Along with it, the 2nd graph which shows the yearly development in the The Changing Face Of Angel Investing Case Study Help overall possessions, reveals that the company is rather effective in adding value to its possessions through its revenues. The development in properties reveals that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the circulation of overall incomes of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the company and the current trends in the external environment of the company. 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 government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting The Changing Face Of Angel Investing Case Study Solution service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the The Changing Face Of Angel Investing Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Changing Face Of Angel Investing Case Study Analysis consists of the concerns 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 used 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 initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Changing Face Of Angel Investing Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Changing Face Of Angel Investing Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in various market sections, with a significant focus on academic publications. CIP functions as a danger 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 Changing Face Of Angel Investing Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as The Changing Face Of Angel Investing Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus 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
As the choices are moving towards digital publishing and the business require an immediate option to avoid the declining market growth. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the consumer demand, the possible markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, revealing a danger to the company's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
