Kinder Morgan Inc Case Study Solution and Analysis
Kinder Morgan Inc 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 service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Kinder Morgan Inc Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Kinder Morgan Inc Case Study Analysis has particular strengths that can be made use of to minimize the threats, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Kinder Morgan Inc Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong monetary position allows the business to think about numerous advancement chances with no fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of Kinder Morgan Inc Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Kinder Morgan Inc Case Study Analysis too, however the growth might be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competition in the publishing market has actually positioned specific dangers to Kinder Morgan Inc Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Kinder Morgan Inc Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the customer base.
Due to absence of data, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual total earnings of Kinder Morgan Inc Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a possible cost.
Together with it, the 2nd chart which reveals the yearly development in the Kinder Morgan Inc Case Study Solution overall assets, shows that the company is rather effective in adding worth to its properties through its profits. The growth in properties shows that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the circulation of total revenues of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a prospective development to accomplish its future advancement objective.
PESTEL analysis could be carried out to discover the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing could minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Kinder Morgan Inc Case Study Help consists of the issues 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 used while publishing ought to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A quick 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 growth in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive competition in the publishing industry is high. The existence 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 also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Kinder Morgan Inc Case Study Analysis consist of the suppliers of the paper for publishing documents. 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.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
CMP runs in a highly competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Kinder Morgan Inc Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• 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 demand of its items in the market.
With the deep analysis of the internal and external environment of the business along 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 require an immediate option to prevent the decreasing market development. Intro of digital publishing might prove to be an instant solution with low quantity of danger for the business. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the customer demand, the prospective markets, the government regulations and the data related to the competitors presented in the market. After that, the company needs to decide one possible sector for its initial offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' products. The steps above the business should go for the initial offering. If the preliminary offering shows a success, the company must opt for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining since 2008, revealing a danger to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.