Ocean Carriers Case Study Case Study Solution and Analysis
Introduction
Ocean Carriers Case Study Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing details and communication services. Major organisation sectors of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant products include books, periodicals, online media, exhibits, research study reports etc. Ocean Carriers Case Study Case Study Solution has ended up being a specialized information provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and Ocean Carriers Case Study Case Study Help in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions 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 capabilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ocean Carriers Case Study Case Study Solution has specific strengths that can be utilized to minimize the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ocean Carriers Case Study Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong financial position permits the company to consider several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase restraints for the business in executing its development program. The weak points of Ocean Carriers Case Study Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Ocean Carriers Case Study Case Study Help as well, but the development might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually presented certain threats to Ocean Carriers Case Study Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Ocean Carriers Case Study Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP might not be determined. The general monetary performance of the business could be examined by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Ocean Carriers Case Study Case Study Solution is growing and the company is rather efficient in attracting a large number of consumers at a prospective cost.
Along with it, the 2nd chart which shows the yearly development in the Ocean Carriers Case Study Case Study Help total assets, reveals that the business is quite efficient in including worth to its assets through its earnings. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the circulation of overall profits of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact 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 might be said that the general political forces affecting Ocean Carriers Case Study Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing might reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Ocean Carriers Case Study Case Study Help consists of the concerns 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 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 authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents provided in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Ocean Carriers Case Study Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Ocean Carriers Case Study Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
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 brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant option to prevent the declining market development. The business could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to first collects the data related to the customer need, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the business ought to 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 market is decreasing given that 2008, showing a hazard to the company's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
