Raptor Oil Company An Exercise Case Study Solution and Analysis
Introduction
Raptor Oil Company An Exercise Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering info, processing details and interaction services. Major company sectors of the business consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major items include books, periodicals, online media, exhibitions, research study reports and so on. Raptor Oil Company An Exercise Case Study Help has ended up being a specialized info company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Raptor Oil Company An Exercise Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• 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 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 scenario? Do the long important experience, technical resources and the abilities of the business 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
Raptor Oil Company An Exercise Case Study Help has certain strengths that can be made use of to minimize the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Raptor Oil Company An Exercise Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong monetary position allows the business to think about several advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase constraints for the company in executing its development program. The weaknesses of Raptor Oil Company An Exercise Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting Raptor Oil Company An Exercise Case Study Help as well, but the growth could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has postured specific dangers to Raptor Oil Company An Exercise Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Raptor Oil Company An Exercise Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual total profits of Raptor Oil Company An Exercise Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is rather effective in drawing in a big number of clients at a potential cost.
Together with it, the second graph which reveals the annual development in the Raptor Oil Company An Exercise Case Study Solution overall assets, shows that the business is rather effective in adding worth to its possessions through its revenues. The development in properties reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis regarding the distribution of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Raptor Oil Company An Exercise Case Study Solution service 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 basic and the Raptor Oil Company An Exercise Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies related to the import of books impact the general company at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful materials etc. China has the highest population worldwide with a high population development, revealing the increasing variety of consumers of the Raptor Oil Company An Exercise Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Raptor Oil Company An Exercise Case Study Analysis includes the concerns 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 should 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 gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry 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 rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Raptor Oil Company An Exercise Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Raptor Oil Company An Exercise Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a significant focus on educational publications. CIP serves 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 Raptor Oil Company An Exercise Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the decreasing market development. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should first gathers the data related to the consumer need, the prospective markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves 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
The development of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term presence, but the circumstance can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
