Abu Dhabi National Oil Company Case Study Solution and Analysis
Abu Dhabi National Oil Company Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing info and interaction services. Significant organisation sections of the business consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its major items include books, regulars, online media, exhibitions, research study reports etc. Abu Dhabi National Oil Company Case Study Help has actually ended up being a specialized information company and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Abu Dhabi National Oil Company Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Abu Dhabi National Oil Company Case Study Analysis has certain strengths that can be used to reduce the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Abu Dhabi National Oil Company Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position allows the business to consider a number of advancement chances with no fear of raising fund externally.
Together with the strengths, the company has certain weak points which might increase constraints for the business in implementing its development program. The weak points of Abu Dhabi National Oil Company Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is decreasing since 2008, affecting Abu Dhabi National Oil Company Case Study Help as well, however the development could be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing market has postured certain hazards to Abu Dhabi National Oil Company Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Abu Dhabi National Oil Company Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the hazard of losing the customer base.
Due to absence of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly total profits of Abu Dhabi National Oil Company Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is quite effective in drawing in a big number of clients at a potential cost.
In addition to it, the second chart which reveals the annual growth in the Abu Dhabi National Oil Company Case Study Solution overall assets, shows that the company is quite effective in adding worth to its possessions through its profits. The development in properties shows that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis concerning the distribution of overall incomes of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a possible growth to achieve its future advancement goal.
PESTEL analysis might be conducted to learn the various external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces impacting Abu Dhabi National Oil Company Case Study Analysis business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Abu Dhabi National Oil Company Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the general organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products and so on. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the Abu Dhabi National Oil Company Case Study Analysis. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Abu Dhabi National Oil Company Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Abu Dhabi National Oil Company Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall 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 large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Abu Dhabi National Oil Company Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market segments, with a significant focus on instructional publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Abu Dhabi National Oil Company Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Abu Dhabi National Oil Company Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to avoid the decreasing industry development. Introduction of digital publishing might prove to be an instant solution with low quantity of danger for the business. However, the company might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business ought to initially collects the data connected to the consumer need, the potential markets, the government policies and the data associated with the competitors presented in the market. After that, the company ought to choose one potential segment for its preliminary offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. If the preliminary offering shows a success, the business should opt for the other markets. In this way the company would have the ability to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term existence, however the situation can be managed by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.