Enman Oil Inc B Case Study Solution and Analysis
Introduction
Enman Oil Inc B Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Enman Oil Inc B Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
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 situation? Do the long important experience, technical resources and the capabilities of the business could be utilized 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
Enman Oil Inc B Case Study Solution has certain strengths that can be used to decrease the hazards, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Enman Oil Inc B Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the company to consider several advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weak points of Enman Oil Inc B Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting Enman Oil Inc B Case Study Solution also, but the development might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has positioned certain hazards to Enman Oil Inc B Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Enman Oil Inc B Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market along with existence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual overall revenues of Enman Oil Inc B Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is quite efficient in drawing in a large number of clients at a potential price.
Together with it, the second chart which shows the yearly growth in the Enman Oil Inc B Case Study Solution total possessions, reveals that the company is quite effective in adding value to its properties through its incomes. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the circulation of total revenues of the company. Major 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 business might move towards other organisation sectors with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Enman Oil Inc B Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies related to the import of books affect the overall business at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Enman Oil Inc B Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Enman Oil Inc B Case Study Help consist of the providers of the paper for publishing 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 existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Enman Oil Inc B Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk 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 service sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the declining market development. For that reason, intro of digital publishing might show to be an instant service with low amount of danger for the company. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to initially collects the data related to the customer need, the potential markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term presence, however the scenario can be managed by thinking about an advancement plan in the future. The business might consider presenting 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.
