Kosmos Energy And Ghana B Case Study Solution and Analysis
Intro
Kosmos Energy And Ghana B Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing info and interaction services. Major company segments of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. Kosmos Energy And Ghana B Case Study Analysis has ended up being a specialized information provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in basic and Kosmos Energy And Ghana B Case Study Solution in specific. These factors consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kosmos Energy And Ghana B Case Study Analysis has particular strengths that can be utilized to lower the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Kosmos Energy And Ghana B Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the business to think about a number of development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase constraints for the business in executing its advancement program. The weak points of Kosmos Energy And Ghana B Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining because 2008, impacting Kosmos Energy And Ghana B Case Study Solution as well, but the development might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed certain hazards to Kosmos Energy And Ghana B Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Kosmos Energy And Ghana B Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be determined. However, the overall financial efficiency of the business could be examined by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Kosmos Energy And Ghana B Case Study Solution is growing and the company is rather effective in bring in a a great deal of clients at a potential cost.
Along with it, the 2nd graph which shows the yearly development in the Kosmos Energy And Ghana B Case Study Analysis total possessions, reveals that the company is rather efficient in including value to its properties through its profits. The development in possessions reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the distribution of total revenues of the company. Major part of the earnings 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 sectors with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP company are high. The government policies regarding 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 particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Kosmos Energy And Ghana B Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable 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 authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number 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 likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Kosmos Energy And Ghana B Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Kosmos Energy And Ghana B Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant focus on academic publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Kosmos Energy And Ghana B Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant service to avoid the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the consumer need, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a hazard to the company's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
