Abu Dhabi National Oil Company 2 Case Study Solution and Analysis
Intro
Abu Dhabi National Oil Company 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Abu Dhabi National Oil Company 2 Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 capabilities of the business 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
Abu Dhabi National Oil Company 2 Case Study Analysis has certain strengths that can be utilized to reduce the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Abu Dhabi National Oil Company 2 Case Study Solution in the publishing industry i.e. 60 years allows 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 provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position enables the business to think about several advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its development program. The weaknesses of Abu Dhabi National Oil Company 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company 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 certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, affecting Abu Dhabi National Oil Company 2 Case Study Help as well, but the growth might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has postured certain risks to Abu Dhabi National Oil Company 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Abu Dhabi National Oil Company 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall profits of Abu Dhabi National Oil Company 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is rather efficient in bring in a large number of customers at a possible cost.
Along with it, the second graph which shows the yearly growth in the Abu Dhabi National Oil Company 2 Case Study Solution total assets, reveals that the company is quite efficient in adding worth to its possessions through its incomes. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the provided data could be the analysis concerning the distribution of total earnings 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 organisation sections with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the current patterns 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 significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general 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 overall GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies related to the import of books impact the total business at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Abu Dhabi National Oil Company 2 Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also 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 Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. The company 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 Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the declining industry growth. For that reason, introduction of digital publishing might prove to be an immediate solution with low amount of risk for the business. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information related to the consumer demand, the possible markets, the government regulations and the data connected to the rivals provided in the market. After that, the company should choose one potential segment for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the business ought to go for the initial offering. If the initial offering shows a success, the business should go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a hazard to the business's long term presence, however the situation can be controlled by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
