Venture Capital Investment In The Clean Energy Sector Case Study Solution and Analysis
Intro
Venture Capital Investment In The Clean Energy Sector Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing info and communication services. Major company sectors of the business include; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. Venture Capital Investment In The Clean Energy Sector Case Study Solution has become a specialized info provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Venture Capital Investment In The Clean Energy Sector Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Venture Capital Investment In The Clean Energy Sector Case Study Help has particular strengths that can be utilized to lower the risks, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Venture Capital Investment In The Clean Energy Sector Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong financial position allows the company to think about several development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Venture Capital Investment In The Clean Energy Sector Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Venture Capital Investment In The Clean Energy Sector Case Study Help also, but the growth could be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing market has postured specific risks to Venture Capital Investment In The Clean Energy Sector Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Venture Capital Investment In The Clean Energy Sector Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be calculated. However, the total monetary efficiency of the business could be analyzed by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Venture Capital Investment In The Clean Energy Sector Case Study Solution is growing and the business is quite efficient in drawing in a a great deal of consumers at a possible rate.
In addition to it, the 2nd graph which shows the yearly development in the Venture Capital Investment In The Clean Energy Sector Case Study Analysis total properties, shows that the business is quite efficient in including value to its assets through its profits. The growth in possessions shows that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the circulation of total incomes of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided 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 federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting Venture Capital Investment In The Clean Energy Sector Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Venture Capital Investment In The Clean Energy Sector Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products and so on. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Venture Capital Investment In The Clean Energy Sector Case Study Solution. However, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Venture Capital Investment In The Clean Energy Sector 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 needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market 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. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Venture Capital Investment In The Clean Energy Sector Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal 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 Investment In The Clean Energy Sector Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a major concentrate on academic publications. CIP serves as a threat 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 marketplace share of Venture Capital Investment In The Clean Energy Sector Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing market growth. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the consumer need, the prospective markets, the government guidelines and the information 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 way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a danger to the company's long term existence, however the circumstance can be managed by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
