Women In Venture Capital Case Study Solution and Analysis
Introduction
Women In Venture Capital Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details service provider and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and Women In Venture Capital Case Study Solution in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
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 valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Women In Venture Capital Case Study Solution has specific strengths that can be made use of to minimize the hazards, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Women In Venture Capital Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position enables the company to think about several advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which could increase restraints for the company in implementing its development program. The weaknesses of Women In Venture Capital Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Women In Venture Capital Case Study Help as well, however the development might be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned certain risks to Women In Venture Capital Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Women In Venture Capital Case Study Help due to the customer shift towards digital libraries.
• The existence 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 gain a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total incomes of Women In Venture Capital Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is quite effective in attracting a large number of consumers at a potential price.
In addition to it, the second graph which reveals the annual growth in the Women In Venture Capital Case Study Help total possessions, reveals that the company is rather efficient in including worth to its assets through its profits. The growth in assets reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the distribution of overall incomes of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state 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 Party of China. It might be stated that the general political forces affecting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific 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.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Women In Venture Capital Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Women In Venture Capital Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry 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 rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Women In Venture Capital Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Women In Venture Capital Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
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 brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant solution to avoid the declining industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the data connected to the consumer demand, the possible markets, the government guidelines and the information related to the rivals presented in the market. After that, the business must decide one potential sector for its initial offering. It ought to collect research study that how it could distinguish its digital publishing from the existing rivals' items. The steps above the company should go for the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a hazard to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
