Abu Dhabi National Oil Company 2 Case Study Solution and Analysis
Abu Dhabi National Oil Company 2 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 info service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Abu Dhabi National Oil Company 2 Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Abu Dhabi National Oil Company 2 Case Study Help has specific strengths that can be made use of to minimize the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Abu Dhabi National Oil Company 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position permits the business to think about numerous development opportunities with no fear of raising fund externally.
Together with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Abu Dhabi National Oil Company 2 Case Study Analysis are offered 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 extremely relies over the Chinese markets for its growth. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing industry is declining since 2008, affecting Abu Dhabi National Oil Company 2 Case Study Solution as well, but the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing market has actually postured particular dangers to Abu Dhabi National Oil Company 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Abu Dhabi National Oil Company 2 Case Study Solution due to the consumer 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 using certain methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market together with existence of high competition increases the threat of losing the customer base.
Due to absence of data, the monetary ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall earnings of Abu Dhabi National Oil Company 2 Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in drawing in a big number of clients at a prospective price.
Together with it, the 2nd graph which shows the yearly development in the Abu Dhabi National Oil Company 2 Case Study Help total possessions, reveals that the company is rather efficient in including worth to its assets through its revenues. The development in properties shows that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the distribution of overall profits of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a prospective development to accomplish its future development objective.
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Abu Dhabi National Oil Company 2 Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Abu Dhabi National Oil Company 2 Case Study Solution in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies connected to the import of books affect the overall business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful products and so on. China has the greatest population on the planet with a high population development, revealing the increasing number of consumers of the Abu Dhabi National Oil Company 2 Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Abu Dhabi National Oil Company 2 Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the virtual libraries on certain sites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Abu Dhabi National Oil Company 2 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 requires high quality files at competitive rates.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Abu Dhabi National Oil Company 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a major focus on academic publications. CIP functions 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 Abu Dhabi National Oil Company 2 Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise among the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company in addition to the market 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 company require an immediate option to avoid the declining industry development. Therefore, introduction of digital publishing could show to be an immediate service with low quantity of risk for the company. However, the company might likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the customer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, revealing a risk to the company's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.