The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Solution and Analysis
Introduction
The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Solution has particular strengths that can be used to minimize the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong financial position permits the business to consider a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the company in executing its development program. The weaknesses of The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Analysis as well, but the development might be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured particular threats to The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The general financial performance of the company might be examined by using the charts provided in the case Appendices. It could be evaluated from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Help is growing and the business is quite efficient in drawing in a large number of customers at a possible rate.
Along with it, the 2nd graph which reveals the annual development in the The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Help total assets, reveals that the business is rather efficient in including value to its properties through its profits. The development in possessions shows that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis relating to the distribution of total revenues of the business. Huge 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 business might move towards other organisation sections with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Help service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the economic policies connected to the import of books affect the total service at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are moving 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 choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required 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. 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 gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market segments, with a significant focus on instructional 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 Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as The Sanofi Aventis Acquisition Of Genzyme Contingent Value Rights 3 Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate option to avoid the decreasing 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 business needs to initially gathers the data related to the customer demand, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a risk to the company's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
