Oil And Gas Industry Case Study Solution and Analysis
Oil And Gas Industry Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting info, processing information and communication services. Significant organisation sectors of the company include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports and so on. Oil And Gas Industry Case Study Help has become a specialized details provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Oil And Gas Industry Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns 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 business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Oil And Gas Industry Case Study Solution has particular strengths that can be utilized to lower the hazards, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Oil And Gas Industry Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position enables the company to consider several development opportunities without any fear of raising fund externally.
In addition to the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its advancement program. The weak points of Oil And Gas Industry Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is declining given that 2008, affecting Oil And Gas Industry Case Study Help too, however the development might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has presented particular threats to Oil And Gas Industry Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Oil And Gas Industry Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market together with existence of high competitors increases the danger of losing the client base.
Due to absence of data, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual total profits of Oil And Gas Industry Case Study Help during 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 rate.
In addition to it, the 2nd chart which shows the annual development in the Oil And Gas Industry Case Study Solution overall assets, shows that the business is rather effective in adding worth to its possessions through its profits. The growth in properties reveals that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis relating to the circulation of overall earnings of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a possible development to accomplish its future development goal.
PESTEL analysis might be performed to discover the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Oil And Gas Industry Case Study Help company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Oil And Gas Industry Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies related to the import of books impact the total business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Environmental forces impacting Oil And Gas Industry Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number 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, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Oil And Gas Industry Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 market saturation, the purchasers needs high quality files at competitive prices.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Oil And Gas Industry Case Study Help include;.
• Chemical Market 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company require an instant option to avoid the decreasing industry growth. The company might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the consumer demand, the potential markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing since 2008, showing a danger to the business's long term existence, however the circumstance can be controlled by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.