Natural Gas Company Case Study Solution and Analysis
Intro
Natural Gas Company Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Natural Gas Company Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing market in general and CMP in particular. These aspects include;
• Entryway 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 technology.
The transformation of the macro markets have raised several concerns 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 abilities of the company could be made use of to strive for 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 Solution has specific strengths that can be made use of to reduce the hazards, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Natural Gas Company Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the business to think about several development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the company in executing its development program. The weaknesses of Natural Gas Company Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting Natural Gas Company Case Study Solution as well, however the development could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has positioned certain threats to Natural Gas Company Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Natural Gas Company Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly overall incomes of Natural Gas Company Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite effective in attracting a large number of clients at a potential cost.
In addition to it, the second chart which shows the annual growth in the Natural Gas Company Case Study Help total possessions, shows that the company is rather effective in adding worth to its possessions through its earnings. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the circulation of total incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting Natural Gas Company Case Study Analysis company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Natural Gas Company Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the total business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading informative materials etc. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Natural Gas Company Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Natural Gas Company Case Study Solution includes the concerns of environmental neighborhoods 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Natural Gas Company Case Study Help include the providers 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 provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market 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 costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Natural Gas Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in different market sections, with a major concentrate on educational publications. CIP serves as a threat 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 Natural Gas Company Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate option to avoid the declining industry growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first gathers the information related to the customer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a risk to the business's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
