The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Solution and Analysis
Introduction
The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Help in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 abilities 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 Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Analysis has specific strengths that can be made use of to reduce the risks, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position allows the business to consider numerous advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its development program. The weaknesses of The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing because 2008, impacting The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Analysis as well, however the growth could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed certain hazards to The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be determined. Nevertheless, the general monetary performance of the business might be examined by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Help is growing and the business is rather effective in bring in a large number of consumers at a prospective rate.
Along with it, the 2nd graph which shows the annual development in the The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Analysis overall assets, shows that the company is quite effective in including worth to its properties through its earnings. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the offered data might be the analysis relating to the circulation of total incomes of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Solution organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the total business at CPM. China's financial conditions are rather favorable for CMP with high GDP growth 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 needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in different market sectors, with a major focus on instructional publications. CIP functions as a danger 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 marketplace share of The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as The Role Of The Government In The Early Development Of American Venture Capital 2 Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 business sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining industry development. The business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially collects the data related to the customer demand, the potential markets, the government regulations and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a risk to the company's long term existence, however the scenario can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
