Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Solution and Analysis
Introduction
Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing information and interaction services. Significant service sections of the business consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Help has actually become a specialized information provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• 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 development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis has particular strengths that can be utilized to lower the risks, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restrictions for the business in executing its advancement program. The weaknesses of Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining since 2008, affecting Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Solution as well, but the growth might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has postured specific risks to Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be determined. However, the general monetary efficiency of the business could be evaluated by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis is growing and the company is rather efficient in bring in a a great deal of consumers at a possible rate.
Along with it, the second graph which shows the annual growth in the Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Solution total possessions, shows that the company is quite efficient in including value to its properties through its revenues. The growth in possessions shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the circulation of total profits of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Help service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices 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 customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents provided in the virtual libraries on certain sites. The altering customer choices towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis consist of the providers of the paper for releasing documents. 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 buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Reliance Industries An Emerging Player In Global Petrochemicals And Energy Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate option to avoid the declining industry growth. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the data related to the consumer demand, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a risk to the business's long term presence, but the scenario can be managed by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
