The Venture Capital Problem Set Case Study Solution and Analysis
Intro
The Venture Capital Problem Set Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, The Venture Capital Problem Set Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities 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 Venture Capital Problem Set Case Study Analysis has specific strengths that can be utilized to reduce the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Venture Capital Problem Set Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position enables the business to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase restraints for the business in executing its advancement program. The weaknesses of The Venture Capital Problem Set Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business 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 specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining given that 2008, affecting The Venture Capital Problem Set Case Study Analysis as well, however the development could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented certain hazards to The Venture Capital Problem Set Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of The Venture Capital Problem Set Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. The overall financial efficiency of the business might be analyzed by utilizing the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of The Venture Capital Problem Set Case Study Help is growing and the business is quite effective in attracting a large number of consumers at a prospective cost.
In addition to it, the second chart which shows the annual growth in the The Venture Capital Problem Set Case Study Analysis overall properties, shows that the company is quite efficient in including value to its assets through its revenues. The growth in assets shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis regarding the distribution of total profits of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting The Venture Capital Problem Set Case Study Help company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful products etc. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the The Venture Capital Problem Set Case Study Analysis. However, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Venture Capital Problem Set Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines 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 Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the virtual libraries on specific websites. The altering customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Venture Capital Problem Set Case Study Help include the providers of the paper for publishing documents. 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 Buyer.
Negotiating 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 market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Venture Capital Problem Set Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining market development. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the data connected to the consumer demand, the prospective markets, the federal government policies and the data associated with the competitors provided in the market. After that, the company should decide one possible sector for its preliminary offering. It should collect research study that how it might differentiate its digital publishing from the existing rivals' items. The actions above the business need to go for the initial offering. If the initial offering shows a success, the business must opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a risk to the company's long term existence, however the scenario can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
