Raptor Oil Company An Exercise Case Study Solution and Analysis
Raptor Oil Company An Exercise Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Raptor Oil Company An Exercise Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions 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 business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Raptor Oil Company An Exercise Case Study Help has specific strengths that can be used to lower the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Raptor Oil Company An Exercise Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position permits the company to think about numerous advancement chances without any fear of raising fund externally.
Along with the strengths, the company has certain weaknesses which could increase restrictions 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 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 must propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing market is decreasing because 2008, impacting Raptor Oil Company An Exercise Case Study Help as well, but the development could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competitors in the publishing market has postured specific dangers to Raptor Oil Company An Exercise Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Raptor Oil Company An Exercise Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market together with presence of high competitors increases the threat of losing the consumer base.
Due to absence of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total incomes of Raptor Oil Company An Exercise Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a large number of clients at a potential rate.
Together with it, the 2nd chart which reveals the annual growth in the Raptor Oil Company An Exercise Case Study Solution total assets, shows that the company is rather effective in including value to its assets through its profits. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the circulation of total revenues of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a possible development to accomplish its future advancement objective.
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials and so on. China has the greatest population worldwide with a high population growth, showing the increasing variety of customers of the Raptor Oil Company An Exercise Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting Raptor Oil Company An Exercise Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive competition in the publishing market is high. The presence of large number of customers 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 likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Raptor Oil Company An Exercise Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Raptor Oil Company An Exercise Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks third and second in various market sectors, with a significant focus on academic publications. CIP acts as a danger 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 marketplace share of Raptor Oil Company An Exercise Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Raptor Oil Company An Exercise Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate service to avoid the decreasing market growth. Therefore, introduction of digital publishing might prove to be an instant service with low quantity of threat for the business. Nevertheless, the company could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should initially gathers the data associated with the consumer demand, the possible markets, the government regulations and the data connected to the competitors provided in the market. After that, the business should choose one prospective segment for its initial offering. It needs to collect research study that how it might separate its digital publishing from the existing competitors' products. The actions above the business should go for the initial offering. The company ought to go for the other markets if the initial offering shows a success. In this way the company would have the ability to implement its digital publishing program.
The growth of the publishing market is declining given that 2008, showing a threat to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the new markets.