Natural Gas Company Case Study Solution and Analysis
Introduction
Natural Gas Company Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing details and interaction services. Major organisation segments of the business include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major items include books, regulars, online media, exhibits, research reports etc. Natural Gas Company Case Study Solution has become a specialized details company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and Natural Gas Company Case Study Solution in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns 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 capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Natural Gas Company Case Study Analysis has certain strengths that can be used to reduce the threats, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Natural Gas Company Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong monetary position enables the company to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase constraints for the business in executing its advancement program. The weaknesses of Natural Gas Company Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting Natural Gas Company Case Study Help as well, however the development could be revived by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular threats to Natural Gas Company Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Natural Gas Company Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be computed. Nevertheless, the total financial efficiency of the company could be analyzed by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Natural Gas Company Case Study Help is growing and the business is rather efficient in bring in a a great deal of clients at a possible price.
Along with it, the second graph which reveals the annual development in the Natural Gas Company Case Study Solution overall possessions, shows that the company is quite effective in adding value to its properties through its incomes. The development in properties shows that the overall value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis concerning the distribution of total revenues of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Natural Gas Company Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Natural Gas Company Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the documents presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
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 competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Natural Gas Company Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry 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. Major competitors of Natural Gas Company Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Natural Gas Company Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data related to the consumer demand, the possible markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the business should choose one prospective section for its initial offering. It must gather research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the business should go for the preliminary offering. If the initial offering proves a success, the company ought to choose the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a hazard to the business's long term existence, however the scenario can be managed by considering 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 entryway in the new markets.
