Energy Security In Europe A Nord Stream Case Study Solution and Analysis
Intro
Energy Security In Europe A Nord Stream Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Energy Security In Europe A Nord Stream Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Energy Security In Europe A Nord Stream Case Study Help has certain strengths that can be made use of to decrease the dangers, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Energy Security In Europe A Nord Stream Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong monetary position permits the business to think about several advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Energy Security In Europe A Nord Stream Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Energy Security In Europe A Nord Stream Case Study Solution as well, however the development might be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed certain dangers to Energy Security In Europe A Nord Stream Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Energy Security In Europe A Nord Stream Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry together with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be determined. The overall monetary performance of the company might be analyzed by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Energy Security In Europe A Nord Stream Case Study Help is growing and the business is rather efficient in bring in a a great deal of consumers at a prospective cost.
Together with it, the second graph which shows the annual development in the Energy Security In Europe A Nord Stream Case Study Solution total properties, reveals that the business is quite efficient in adding value to its assets through its incomes. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis regarding the distribution of overall revenues of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Energy Security In Europe A Nord Stream Case Study Analysis company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Energy Security In Europe A Nord Stream Case Study Solution in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the general service at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Energy Security In Europe A Nord Stream Case Study Solution includes the concerns of environmental communities 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. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files provided in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the threat of replacement for the market.
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 and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Energy Security In Europe A Nord Stream Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market 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 Energy Security In Europe A Nord Stream Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a significant focus on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Energy Security In Europe A Nord Stream Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing industry development. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should first gathers the data related to the consumer demand, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, revealing a risk to the company's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
