Abu Dhabi National Oil Company Case Study Solution and Analysis
Introduction
Abu Dhabi National Oil Company Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Abu Dhabi National Oil Company Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement 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 circumstance? Do the long important 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
Abu Dhabi National Oil Company Case Study Solution has particular strengths that can be utilized to minimize the risks, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Abu Dhabi National Oil Company Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the company to consider numerous advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase constraints for the business in executing its development program. The weaknesses of Abu Dhabi National Oil Company Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Abu Dhabi National Oil Company Case Study Analysis also, but the development might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned certain hazards to Abu Dhabi National Oil Company Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Abu Dhabi National Oil Company Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual overall revenues of Abu Dhabi National Oil Company Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in bring in a large number of consumers at a prospective cost.
Along with it, the 2nd graph which reveals the yearly growth in the Abu Dhabi National Oil Company Case Study Analysis total assets, shows that the business is rather effective in including value to its possessions through its earnings. The growth in possessions reveals that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis relating to the distribution of total incomes of the business. Huge part of the incomes 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 business segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting Abu Dhabi National Oil Company Case Study Help business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out helpful products and so on. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Abu Dhabi National Oil Company Case Study Analysis. Nevertheless, the customer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Abu Dhabi National Oil Company Case Study Analysis consists of the concerns of ecological neighborhoods 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 needs to 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 first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the documents provided in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Abu Dhabi National Oil Company Case Study Solution consist of the providers 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.
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 marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Abu Dhabi National Oil Company Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in numerous market sectors, with a major focus on educational publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Abu Dhabi National Oil Company Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an instant solution to prevent the decreasing industry development. Therefore, intro of digital publishing could show to be an immediate solution with low amount of threat for the business. The company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first collects the data related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, revealing a hazard to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
