Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Solution and Analysis
Introduction
Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help 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 information, processing info and communication services. Major service sections of the business include; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports and so on. Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help has actually ended up being a specialized information service provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in basic and Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 abilities of the company could be utilized 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
Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Solution has specific strengths that can be made use of to reduce the threats, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the company to consider several development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Analysis too, but the growth could be restored by availing specific chances provided 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 customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has posed particular threats to Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help due to the customer shift towards virtual 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 rivals can gain a strong customer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the annual total earnings of Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help during the period 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 rather effective in attracting a large number of customers at a possible rate.
Together with it, the second graph which shows the annual growth in the Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help overall properties, shows that the company is quite effective in adding worth to its properties through its profits. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis relating to the circulation of overall earnings of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sections with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a significant concentrate on academic publications. CIP acts as a danger 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 Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Impact Of Oil And Gas Industry On The Economy Of Western Canada Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the decreasing market development. Intro of digital publishing could prove to be an immediate option with low amount of threat for the company. However, the business might 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 company needs to initially collects the data related to the consumer demand, the possible markets, the government policies and the information connected to the competitors presented in the market. After that, the business needs to decide one possible section for its initial offering. It must collect research that how it might separate its digital publishing from the existing competitors' products. After all the actions above the company need to go for the initial offering. If the initial offering proves a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a threat to the company's long term presence, but the circumstance can be managed by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
