Nova Chemical Corporation Case Study Solution and Analysis
Nova Chemical Corporation Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing info and interaction services. Major service segments of the business consist of; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its significant products include books, regulars, online media, exhibits, research reports etc. Nova Chemical Corporation Case Study Solution has become a specialized details service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Nova Chemical Corporation Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic 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 techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Nova Chemical Corporation Case Study Solution has certain strengths that can be made use of to reduce the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Nova Chemical Corporation Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the business to consider a number of advancement chances without any fear of raising fund externally.
In addition to the strengths, the company has certain weak points which could increase constraints for the business in implementing its advancement program. The weaknesses of Nova Chemical Corporation Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard 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 expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
The development of the publishing industry is decreasing since 2008, impacting Nova Chemical Corporation Case Study Help as well, however the growth could be revived by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed specific hazards to Nova Chemical Corporation Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Nova Chemical Corporation Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market together with existence of high competitors increases the threat of losing the client base.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be determined. Nevertheless, the general financial performance of the business could be analyzed by utilizing the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Nova Chemical Corporation Case Study Analysis is growing and the company is quite efficient in bring in a a great deal of clients at a prospective price.
Together with it, the second chart which reveals the yearly growth in the Nova Chemical Corporation Case Study Solution total possessions, reveals that the business is quite effective in adding worth to its properties through its incomes. The growth in assets shows that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the distribution of total incomes of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a prospective growth to achieve its future development objective.
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Nova Chemical Corporation Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Nova Chemical Corporation Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the general organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Nova Chemical Corporation Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing consumer choices.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Nova Chemical Corporation Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released documents is the files presented in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Nova Chemical Corporation Case Study Help include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the buyers needs high quality files at competitive rates.
CMP runs in an extremely competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Nova Chemical Corporation Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a major focus on educational publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Nova Chemical Corporation Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Nova Chemical Corporation Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the decreasing industry growth. The business could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to first collects the data associated with the customer need, the potential markets, the government guidelines and the information associated with the competitors presented in the market. After that, the company should choose one potential section for its initial offering. It ought to gather research study that how it might separate its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. The company should go for the other markets if the preliminary offering shows a success. In this way the company would be able to implement its digital publishing program.
Although, the development of the publishing market is declining since 2008, showing a threat to the company's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could think about 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.