Gran Tierra Energy Inc In Brazil 3 Case Study Solution and Analysis
Gran Tierra Energy Inc In Brazil 3 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in general and Gran Tierra Energy Inc In Brazil 3 Case Study Help in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Gran Tierra Energy Inc In Brazil 3 Case Study Solution has particular strengths that can be made use of to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Gran Tierra Energy Inc In Brazil 3 Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position allows the business to think about several development chances without any worry of raising fund externally.
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of Gran Tierra Energy Inc In Brazil 3 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is decreasing given that 2008, affecting Gran Tierra Energy Inc In Brazil 3 Case Study Help as well, but the development could be revived by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed specific threats to Gran Tierra Energy Inc In Brazil 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Gran Tierra Energy Inc In Brazil 3 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 rivals can get a strong consumer base by using specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market along with existence of high competition increases the risk of losing the consumer base.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. The general financial efficiency of the company might be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Gran Tierra Energy Inc In Brazil 3 Case Study Help is growing and the company is rather efficient in drawing in a large number of customers at a potential price.
In addition to it, the second chart which shows the yearly growth in the Gran Tierra Energy Inc In Brazil 3 Case Study Analysis total assets, shows that the company is quite effective in including worth to its properties through its profits. The development in properties reveals that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis relating to the circulation of overall revenues of the company. Huge 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 business segments with a prospective development to accomplish its future development objective.
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Gran Tierra Energy Inc In Brazil 3 Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Gran Tierra Energy Inc In Brazil 3 Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies related to the import of books affect the general company at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful materials and so on. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Gran Tierra Energy Inc In Brazil 3 Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Gran Tierra Energy Inc In Brazil 3 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market 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 go into in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the files presented in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Gran Tierra Energy Inc In Brazil 3 Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry 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.
CMP runs in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Gran Tierra Energy Inc In Brazil 3 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a significant focus on instructional 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 Gran Tierra Energy Inc In Brazil 3 Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company require an immediate service to prevent the decreasing industry development. For that reason, intro of digital publishing might show to be an instant solution with low amount of risk for the business. The company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially collects the data related to the consumer demand, the prospective markets, the federal government regulations and the data related to the rivals provided 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 implement its digital publishing program.
Although, the growth of the publishing market is declining since 2008, revealing a danger to the business's long term existence, however the scenario can be managed by thinking about an advancement strategy 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 entryway in the new markets.