Venture Viability Research 2 Case Study Solution and Analysis
Intro
Venture Viability Research 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing details and communication services. Major business sections of the company include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant products include books, regulars, online media, exhibits, research reports etc. Venture Viability Research 2 Case Study Solution has become a specialized information company and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Venture Viability Research 2 Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be used 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 Viability Research 2 Case Study Solution has certain strengths that can be utilized to reduce the risks, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Venture Viability Research 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong monetary position enables the business to consider numerous development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Venture Viability Research 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting Venture Viability Research 2 Case Study Analysis as well, but the growth could be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has presented particular threats to Venture Viability Research 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Venture Viability Research 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. However, the general monetary efficiency of the company might be analyzed by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Venture Viability Research 2 Case Study Help is growing and the business is rather effective in drawing in a a great deal of consumers at a prospective cost.
Along with it, the 2nd graph which shows the yearly development in the Venture Viability Research 2 Case Study Solution overall properties, reveals that the business is rather efficient in including worth to its properties through its revenues. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the distribution of overall earnings of the company. 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 might move towards other organisation sections with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Venture Viability Research 2 Case Study Help organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Venture Viability Research 2 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies related to the import of books affect the total business at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Venture Viability Research 2 Case Study Help. However, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Venture Viability Research 2 Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Venture Viability Research 2 Case Study Help include the suppliers of the paper for publishing documents. 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 a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Venture Viability Research 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an immediate option to avoid the declining industry growth. Introduction of digital publishing could prove to be an instant service with low quantity of risk for the company. The company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data associated with the consumer need, the possible markets, the federal government regulations and the data associated with the competitors presented in the market. After that, the business must decide one prospective sector for its preliminary offering. It should gather research that how it could separate its digital publishing from the existing competitors' products. After all the steps above the company ought to go for the initial offering. If the preliminary offering proves a success, the business should opt for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a threat to the company's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
