Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Solution and Analysis
Introduction
Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing info and interaction services. Significant company segments of the business consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Help has become a specialized information supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Analysis in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Solution has particular strengths that can be utilized to lower the risks, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources 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 prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the business to consider several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing because 2008, affecting Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Help as well, however the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company could also introduce 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 dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed specific hazards to Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market together with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be determined. The total financial efficiency of the company could be examined by using the charts provided in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Analysis is growing and the company is rather effective in bring in a a great deal of clients at a possible cost.
Together with it, the 2nd chart which reveals the annual growth in the Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Analysis total assets, shows that the company is quite effective in adding worth to its possessions through its incomes. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis regarding the circulation of total incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence 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. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Help 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 period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in various market sections, with a major focus on educational publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Big Double Deal Anadarkos Acquisition Of Kerr Mcgee And Western Gas Resources Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition 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 business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the declining industry growth. Intro of digital publishing might show to be an immediate solution with low quantity of threat for the business. The business 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 business must first collects the information associated with the consumer need, the prospective markets, the federal government policies and the data associated with the competitors provided in the market. After that, the company must choose one possible sector for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing competitors' items. The actions above the business need to go for the preliminary offering. If the preliminary offering shows a success, the company should opt for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, but the situation can be controlled by considering an advancement 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 prevent the threat of failure for entrance in the brand-new markets.
