Venture Capital Deal Sourcing And Screening 2 Case Study Solution and Analysis
Introduction
Venture Capital Deal Sourcing And Screening 2 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Venture Capital Deal Sourcing And Screening 2 Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Venture Capital Deal Sourcing And Screening 2 Case Study Analysis has specific strengths that can be made use of to reduce the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Venture Capital Deal Sourcing And Screening 2 Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position permits the company to think about a number of development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of Venture Capital Deal Sourcing And Screening 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans 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, impacting Venture Capital Deal Sourcing And Screening 2 Case Study Analysis as well, however the growth could be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually positioned specific risks to Venture Capital Deal Sourcing And Screening 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Venture Capital Deal Sourcing And Screening 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total incomes of Venture Capital Deal Sourcing And Screening 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is quite efficient in drawing in a big number of clients at a possible rate.
Along with it, the 2nd graph which reveals the annual growth in the Venture Capital Deal Sourcing And Screening 2 Case Study Solution total possessions, shows that the company is quite efficient in including value to its possessions through its earnings. The growth in properties reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis regarding the circulation of overall revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, 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 company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Venture Capital Deal Sourcing And Screening 2 Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the documents presented in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Venture Capital Deal Sourcing And Screening 2 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. However, 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 Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sections, with a significant concentrate on academic publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Venture Capital Deal Sourcing And Screening 2 Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market development. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first gathers the information related to the consumer demand, the potential markets, the government guidelines and the information connected to the competitors presented in the market. After that, the business needs to choose one prospective section for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' products. The actions above the company ought to go for the preliminary offering. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
