The Ipo Issue Process Before And After The Jobs Act Case Study Solution and Analysis
Intro
The Ipo Issue Process Before And After The Jobs Act Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Ipo Issue Process Before And After The Jobs Act Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Ipo Issue Process Before And After The Jobs Act Case Study Analysis has certain strengths that can be utilized to reduce the risks, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Ipo Issue Process Before And After The Jobs Act Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong monetary position enables the business to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of The Ipo Issue Process Before And After The Jobs Act Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing because 2008, impacting The Ipo Issue Process Before And After The Jobs Act Case Study Solution as well, but the growth could be revived by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain dangers to The Ipo Issue Process Before And After The Jobs Act Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The Ipo Issue Process Before And After The Jobs Act Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP might not be calculated. The total monetary efficiency of the company might be examined by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The Ipo Issue Process Before And After The Jobs Act Case Study Help is growing and the company is quite efficient in drawing in a large number of clients at a possible cost.
Along with it, the second graph which reveals the yearly development in the The Ipo Issue Process Before And After The Jobs Act Case Study Solution overall properties, shows that the business is rather efficient in including worth to its assets through its earnings. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of total earnings of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Ipo Issue Process Before And After The Jobs Act 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 needed to be non reusable 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 regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Ipo Issue Process Before And After The Jobs Act Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Ipo Issue Process Before And After The Jobs Act Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as The Ipo Issue Process Before And After The Jobs Act Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item 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 need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry development. For that reason, introduction of digital publishing could prove to be an instant solution with low amount of threat for the business. The company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to first collects the information related to the customer demand, the potential markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a threat to the business's long term existence, however the situation can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
