Kosmos Energy And Ghana A Case Study Solution and Analysis
Kosmos Energy And Ghana A Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details company and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in general and Kosmos Energy And Ghana A Case Study Analysis in particular. These factors consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Kosmos Energy And Ghana A Case Study Solution has certain strengths that can be utilized to reduce the risks, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Kosmos Energy And Ghana A Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position allows the business to consider several development chances without any fear of raising fund externally.
Together with the strengths, the business has certain weak points which could increase constraints for the company in executing its advancement program. The weaknesses of Kosmos Energy And Ghana A Case Study Help are given as follows;
• Despite of being a science and innovation 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 development. It needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing industry is declining considering that 2008, affecting Kosmos Energy And Ghana A Case Study Analysis as well, but the development could be revived by availing specific chances presented in the market. The market chances for CMP include;
• The company might also introduce 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 growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competition in the publishing market has postured certain threats to Kosmos Energy And Ghana A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Kosmos Energy And Ghana A Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the consumer base.
Due to absence of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual overall revenues of Kosmos Energy And Ghana A Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in bring in a large number of clients at a prospective price.
Along with it, the 2nd chart which reveals the annual growth in the Kosmos Energy And Ghana A Case Study Help overall assets, reveals that the company is rather efficient in including worth to its possessions through its earnings. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis relating to the distribution of total profits of the company. Major part of the profits 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 service sectors with a potential growth to accomplish its future development objective.
PESTEL analysis could be performed to find out the different external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative materials and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Kosmos Energy And Ghana A Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer choices.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental forces impacting Kosmos Energy And Ghana A Case Study Solution consists of the concerns of environmental neighborhoods over the usage 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 ought to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on particular sites. The altering consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Kosmos Energy And Ghana A Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
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 highest market share in the Chinese publishing market. Significant rivals of Kosmos Energy And Ghana A Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Kosmos Energy And Ghana A Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its items in the market.
As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the consumer demand, the potential markets, the federal government guidelines and the information associated with the rivals provided in the market. After that, the business ought to decide one prospective segment for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the business ought to choose the initial offering. If the preliminary offering shows a success, the company should opt for the other markets. In this method the company would be able to execute its digital publishing program.
The development of the publishing industry is declining given that 2008, showing a danger to the company's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.