Venture Capital Deal Sourcing And Screening 2 Case Study Solution and Analysis
Venture Capital Deal Sourcing And Screening 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and Venture Capital Deal Sourcing And Screening 2 Case Study Help in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Venture Capital Deal Sourcing And Screening 2 Case Study Analysis has certain strengths that can be made use of to minimize the hazards, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Venture Capital Deal Sourcing And Screening 2 Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position enables the business to consider several development chances without any worry of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of Venture Capital Deal Sourcing And Screening 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional 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 particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is decreasing given that 2008, impacting Venture Capital Deal Sourcing And Screening 2 Case Study Solution too, but the development might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competitors in the publishing industry has posed particular hazards to Venture Capital Deal Sourcing And Screening 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Venture Capital Deal Sourcing And Screening 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the client base.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual total incomes of Venture Capital Deal Sourcing And Screening 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is rather efficient in drawing in a large number of clients at a possible rate.
In addition to it, the 2nd chart which shows the yearly growth in the Venture Capital Deal Sourcing And Screening 2 Case Study Solution overall properties, shows that the business is rather efficient in including value to its assets through its revenues. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis relating to the circulation of total incomes of the business. Major part of the profits 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 service sectors with a possible development to attain its future advancement objective.
PESTEL analysis might be performed to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Venture Capital Deal Sourcing And Screening 2 Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of brand-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. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Venture Capital Deal Sourcing And Screening 2 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry 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 an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Venture Capital Deal Sourcing And Screening 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Venture Capital Deal Sourcing And Screening 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its products in the market.
As the choices are moving towards digital publishing and the company require an instant service to avoid the declining market growth. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should initially collects the information related to the customer need, the potential markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining since 2008, showing a danger to the company's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.