Cnooc Building A World Class Energy Company Case Study Solution and Analysis
Introduction
Cnooc Building A World Class Energy Company Case Study Analysis 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 details, processing info and interaction services. Significant business sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. Cnooc Building A World Class Energy Company Case Study Help has ended up being a specialized info provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Cnooc Building A World Class Energy Company Case Study Analysis in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Cnooc Building A World Class Energy Company Case Study Analysis has certain 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 offered as follows;
• The long term experience of Cnooc Building A World Class Energy Company Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position enables the company to consider a number of development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase restrictions for the business in implementing its development program. The weak points of Cnooc Building A World Class Energy Company Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Cnooc Building A World Class Energy Company Case Study Solution as well, however the growth might be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured certain risks to Cnooc Building A World Class Energy Company Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Cnooc Building A World Class Energy Company Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual total revenues of Cnooc Building A World Class Energy Company Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite effective in drawing in a big number of consumers at a prospective price.
Together with it, the 2nd chart which shows the annual development in the Cnooc Building A World Class Energy Company Case Study Analysis overall possessions, shows that the company is rather effective in adding value to its possessions through its incomes. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis regarding the distribution of total profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal 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 said that the total political forces impacting Cnooc Building A World Class Energy Company Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology together with the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Cnooc Building A World Class Energy Company Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the virtual libraries on particular sites. The altering customer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Cnooc Building A World Class Energy Company Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Cnooc Building A World Class Energy Company Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate option to prevent the declining industry development. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must initially collects the information related to the consumer need, the potential markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a threat to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
