The Venture Capital Problem Set 2 Case Study Solution and Analysis
Intro
The Venture Capital Problem Set 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing information and communication services. Major service sections of the business include; books, regulars, consultancy and circulation. The company has a vast product portfolio and its major products include books, periodicals, online media, exhibits, research study reports etc. The Venture Capital Problem Set 2 Case Study Help has actually ended up being a specialized details company and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, The Venture Capital Problem Set 2 Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of 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 Venture Capital Problem Set 2 Case Study Solution has certain strengths that can be made use of to decrease the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Venture Capital Problem Set 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the company to think about several advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase restraints for the company in implementing its development program. The weak points of The Venture Capital Problem Set 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting The Venture Capital Problem Set 2 Case Study Solution as well, however the growth could be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client 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 using its vast funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has postured particular dangers to The Venture Capital Problem Set 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of The Venture Capital Problem Set 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total incomes of The Venture Capital Problem Set 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a big number of customers at a prospective cost.
In addition to it, the 2nd chart which reveals the annual growth in the The Venture Capital Problem Set 2 Case Study Analysis overall properties, shows that the company is rather effective in including worth to its assets through its earnings. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the distribution of overall incomes of the business. Major part of the revenues 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 company sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting The Venture Capital Problem Set 2 Case Study Analysis service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out helpful products and so on. China has the greatest population in the world with a high population development, showing the increasing number of customers of the The Venture Capital Problem Set 2 Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Venture Capital Problem Set 2 Case Study Analysis consists of the concerns of environmental communities over the use 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 should not be hazardous for the environment.
Legal.
Legal guidelines 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 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the documents provided in the virtual libraries on certain sites. The changing consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Venture Capital Problem Set 2 Case Study Help include 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Venture Capital Problem Set 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand 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 suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low quantity of danger for the business. Nevertheless, the business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first collects the data connected to the customer need, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the company must choose one potential segment for its initial offering. It needs to gather research study that how it could separate its digital publishing from the existing competitors' items. After all the actions above the business need to opt for the preliminary offering. If the initial offering shows a success, the company must choose the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a risk to the business's long term presence, however the situation can be managed by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
