Kosmos Energy And Ghana A Case Study Solution and Analysis
Kosmos Energy And Ghana A Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Kosmos Energy And Ghana A Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change 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 valuable experience, technical resources and the capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Kosmos Energy And Ghana A Case Study Analysis has specific strengths that can be utilized to minimize the risks, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Kosmos Energy And Ghana A Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the company to consider numerous advancement chances with no worry of raising fund externally.
In addition to the strengths, the company has certain weak points which might increase constraints for the business in executing its development program. The weak points of Kosmos Energy And Ghana A Case Study Analysis 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 development. It needs to propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
The development of the publishing industry is declining because 2008, impacting Kosmos Energy And Ghana A Case Study Solution as well, but the growth might be revived by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competition in the publishing industry has posed specific hazards to Kosmos Energy And Ghana A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Kosmos Energy And Ghana A Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry in addition to existence of high competitors increases the danger of losing the consumer base.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly total profits of Kosmos Energy And Ghana A Case Study Solution during the period 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 clients at a possible rate.
Together with it, the second chart which reveals the annual growth in the Kosmos Energy And Ghana A Case Study Analysis total properties, shows that the company is quite effective in adding worth to its properties through its revenues. The growth in properties reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis relating to the circulation of overall profits of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to attain its future development goal.
PESTEL analysis might be carried out to find out the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company 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 federal government, for that reason, the publishing sector is extremely monitored and assisted 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 likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Kosmos Energy And Ghana A Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the overall service at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Kosmos Energy And Ghana A Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Kosmos Energy And Ghana A Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the virtual libraries on certain websites. The altering customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Kosmos Energy And Ghana A Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business 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 Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sections, with a significant concentrate on educational publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Kosmos Energy And Ghana A Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its items in the market.
As the choices are moving towards digital publishing and the company need an instant option to avoid the decreasing industry growth. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially gathers the information connected to the consumer demand, the possible markets, the federal government guidelines and the information related to the rivals presented in the market. After that, the company needs to decide one prospective section for its initial offering. It should gather research that how it could separate its digital publishing from the existing competitors' products. After all the actions above the business ought to go for the initial offering. If the preliminary offering proves a success, the business should choose the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is decreasing since 2008, revealing a hazard to the company's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.