Pioneer Petroleum Corp Case Study Solution and Analysis
Introduction
Pioneer Petroleum Corp Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details company and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Pioneer Petroleum Corp Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Pioneer Petroleum Corp Case Study Help has particular strengths that can be made use of to minimize the dangers, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Pioneer Petroleum Corp Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong monetary position allows the company to consider several advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Pioneer Petroleum Corp Case Study Help are provided 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 highly relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining because 2008, affecting Pioneer Petroleum Corp Case Study Solution as well, but the growth could be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually posed particular hazards to Pioneer Petroleum Corp Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Pioneer Petroleum Corp Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the threat of losing the client base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. The total monetary performance of the business could be examined by utilizing the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Pioneer Petroleum Corp Case Study Solution is growing and the business is quite efficient in bring in a large number of consumers at a potential price.
Along with it, the 2nd graph which shows the annual development in the Pioneer Petroleum Corp Case Study Solution total possessions, shows that the company is rather efficient in adding worth to its possessions through its profits. The growth in assets reveals that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis relating to the circulation of total incomes of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Pioneer Petroleum Corp Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Pioneer Petroleum Corp Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
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 used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the virtual libraries on certain sites. The changing customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Pioneer Petroleum Corp Case Study Help 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 overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence 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 Pioneer Petroleum Corp Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same duration, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks 3rd and 2nd in various market sections, with a major focus on instructional publications. CIP acts 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 market share of Pioneer Petroleum Corp Case Study Analysis easily in the existing market scenario.
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 6th in the state-owned publishers in terms of service scale. It is also among the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant option to prevent the declining industry growth. The business might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should initially collects the data associated with the consumer demand, the possible markets, the government regulations and the data associated with the competitors presented in the market. After that, the business needs to choose one possible segment for its initial offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business must go for the preliminary offering. The company ought to go for the other markets if the initial offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a hazard to the company's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
