Venture Team Design Workbook Case Study Solution and Analysis
Intro
Venture Team Design Workbook Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Venture Team Design Workbook Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation 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 abilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Venture Team Design Workbook Case Study Analysis has particular strengths that can be made use of to lower the dangers, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Venture Team Design Workbook Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong monetary position allows the business to consider numerous development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restrictions for the company in executing its development program. The weak points of Venture Team Design Workbook Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Venture Team Design Workbook Case Study Analysis too, however the development might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented particular dangers to Venture Team Design Workbook Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Venture Team Design Workbook Case Study Solution due to the consumer 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 rivals can get a strong customer base by using particular strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market together with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall incomes of Venture Team Design Workbook Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in attracting a large number of customers at a possible cost.
Together with it, the second chart which shows the annual growth in the Venture Team Design Workbook Case Study Help total assets, shows that the business is rather effective in adding value to its possessions through its revenues. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis relating to the circulation of overall profits of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Venture Team Design Workbook Case Study Help organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading helpful materials and so on. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Venture Team Design Workbook Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Venture Team Design Workbook Case Study Solution includes 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 utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the virtual libraries on specific websites. The changing customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Venture Team Design Workbook Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market 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 prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal 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 Team Design Workbook Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major concentrate 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 concentrated on digital publishing and might wean the marketplace share of Venture Team Design Workbook Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with a yearly overall profits 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
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing industry development. Introduction of digital publishing might prove to be an immediate solution with low quantity of risk for the company. Nevertheless, the business might also consider 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 collects the data connected to the customer need, the prospective markets, the government policies and the information associated with the rivals presented in the market. After that, the business ought to decide one prospective section for its preliminary offering. It needs to gather research that how it could separate its digital publishing from the existing competitors' products. After all the steps above the company need to choose the initial offering. If the initial offering shows a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a danger to the company's long term existence, however the scenario can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
