Venture Capital Deal Sourcing And Screening Case Study Solution and Analysis
Intro
Venture Capital Deal Sourcing And Screening Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Venture Capital Deal Sourcing And Screening Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 scenario? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future development 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 Case Study Analysis has specific strengths that can be used to lower the threats, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Venture Capital Deal Sourcing And Screening Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong financial position enables the company to consider several advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Venture Capital Deal Sourcing And Screening Case Study Help are provided 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 should propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Venture Capital Deal Sourcing And Screening Case Study Analysis as well, but the growth could be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually posed particular hazards to Venture Capital Deal Sourcing And Screening Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Venture Capital Deal Sourcing And Screening Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market together with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total incomes of Venture Capital Deal Sourcing And Screening Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in bring in a large number of consumers at a potential price.
In addition to it, the second graph which shows the annual growth in the Venture Capital Deal Sourcing And Screening Case Study Analysis total properties, reveals that the business is rather effective in including value to its assets through its profits. The development in properties reveals that the total worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the given information could be the analysis relating to the distribution of total profits of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the performance of the company and the recent 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 frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Venture Capital Deal Sourcing And Screening Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the overall organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful materials and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the Venture Capital Deal Sourcing And Screening Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Venture Capital Deal Sourcing And Screening Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Venture Capital Deal Sourcing And Screening Case Study Analysis 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 overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence 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 rivals of Venture Capital Deal Sourcing And Screening Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a major focus on instructional publications. CIP functions as a hazard 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 marketplace share of Venture Capital Deal Sourcing And Screening Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company require an immediate option to prevent the decreasing industry development. For that reason, introduction of digital publishing might prove to be an instant solution with low quantity of risk for the company. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company needs to first gathers the data related to the consumer demand, the possible markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a threat to the company's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
