Ocean Drilling Inc 3 Case Study Solution and Analysis
Intro
Ocean Drilling Inc 3 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and Ocean Drilling Inc 3 Case Study Analysis in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions 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 company could be made use of 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
Ocean Drilling Inc 3 Case Study Solution has particular strengths that can be made use of to reduce the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ocean Drilling Inc 3 Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the business to think about several advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Ocean Drilling Inc 3 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Ocean Drilling Inc 3 Case Study Solution as well, however the development might be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually posed particular dangers to Ocean Drilling Inc 3 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Ocean Drilling Inc 3 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. However, the general monetary efficiency of the company could be examined by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Ocean Drilling Inc 3 Case Study Analysis is growing and the business is quite effective in drawing in a large number of clients at a prospective rate.
Together with it, the 2nd graph which shows the annual development in the Ocean Drilling Inc 3 Case Study Solution total assets, shows that the company is rather effective in adding worth to its possessions through its incomes. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the distribution of overall profits of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces impacting Ocean Drilling Inc 3 Case Study Analysis service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative products etc. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Ocean Drilling Inc 3 Case Study Help. However, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Ocean Drilling Inc 3 Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing market China. A brief 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 potential growth in the market tends to attract brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on particular sites. The altering customer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Ocean Drilling Inc 3 Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 needs high quality files at competitive rates.
Competitors 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 highest market share in the Chinese publishing market. Significant competitors of Ocean Drilling Inc 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Ocean Drilling Inc 3 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the decreasing market growth. For that reason, introduction of digital publishing might show to be an instant service with low amount of risk for the company. The company could also 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 must first gathers the data related to the customer demand, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a risk to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
