Ocean Drilling Inc 3 Case Study Solution and Analysis
Ocean Drilling Inc 3 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and Ocean Drilling Inc 3 Case Study Help in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Ocean Drilling Inc 3 Case Study Solution has certain strengths that can be made use of to reduce the threats, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ocean Drilling Inc 3 Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position allows the business to think about numerous development chances without any worry of raising fund externally.
Together with the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Ocean Drilling Inc 3 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing market is declining considering that 2008, impacting Ocean Drilling Inc 3 Case Study Help also, but the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing industry has postured particular dangers to Ocean Drilling Inc 3 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Ocean Drilling Inc 3 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat 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 in addition to presence of high competition increases the risk of losing the client base.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual overall profits of Ocean Drilling Inc 3 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a prospective cost.
In addition to it, the 2nd chart which shows the yearly development in the Ocean Drilling Inc 3 Case Study Solution total possessions, reveals that the company is quite efficient in including value to its assets through its profits. The growth in assets shows that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given information might be the analysis regarding the circulation of total earnings of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a possible growth to accomplish its future advancement objective.
PESTEL analysis might be carried out to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Ocean Drilling Inc 3 Case Study Analysis company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Ocean Drilling Inc 3 Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. 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 overall company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful products etc. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Ocean Drilling Inc 3 Case Study Solution. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Ecological forces affecting Ocean Drilling Inc 3 Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Ocean Drilling Inc 3 Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP operates in a highly competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Ocean Drilling Inc 3 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sectors, with a major focus on educational publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Ocean Drilling Inc 3 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an immediate option to prevent the decreasing market development. For that reason, intro of digital publishing could show to be an immediate option with low amount of risk for the company. However, the company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially gathers the data connected to the consumer demand, the prospective markets, the government guidelines and the information associated with the competitors provided in the market. After that, the business should choose one possible sector for its preliminary offering. It must collect research study that how it could separate its digital publishing from the existing competitors' products. After all the actions above the business ought to opt for the preliminary offering. The company needs to go for the other markets if the initial offering proves a success. In this method the company would have the ability to execute its digital publishing program.
The growth of the publishing industry is decreasing since 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.