The Venture Capital Problem Set Case Study Solution and Analysis
The Venture Capital Problem Set Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing info and communication services. Major organisation sections of the business include; books, regulars, consultancy and circulation. The business has a large item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. The Venture Capital Problem Set Case Study Solution has actually ended up being a specialized details company and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, The Venture Capital Problem Set Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
The Venture Capital Problem Set Case Study Help has certain strengths that can be utilized to minimize the threats, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Venture Capital Problem Set Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position enables the business to consider a number of advancement opportunities with no fear of raising fund externally.
Together with the strengths, the business has specific weaknesses which might increase constraints for the company in implementing its development program. The weak points of The Venture Capital Problem Set Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is decreasing considering that 2008, affecting The Venture Capital Problem Set Case Study Help as well, however the development could be revived by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular dangers to The Venture Capital Problem Set Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of The Venture Capital Problem Set Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the danger of losing the consumer base.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total earnings of The Venture Capital Problem Set Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in drawing in a big number of customers at a prospective rate.
Along with it, the 2nd graph which shows the yearly development in the The Venture Capital Problem Set Case Study Solution total possessions, shows that the company is quite efficient in including value to its possessions through its earnings. The development in possessions shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis regarding the circulation of total profits of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a possible growth to attain its future advancement goal.
PESTEL analysis could be conducted to find out the different external forces impacting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces impacting The Venture Capital Problem Set Case Study Help business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the The Venture Capital Problem Set Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the general business at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting The Venture Capital Problem Set Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Venture Capital Problem Set Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers requires high quality documents at competitive costs.
CMP operates in a highly competitive market with the existence of large number of rivals. Nevertheless, the company 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 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as The Venture Capital Problem Set Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the declining market growth. The business could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must initially collects the data related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.