Shell Nigeria The Wikileaks Cables Case Study Solution and Analysis
Introduction
Shell Nigeria The Wikileaks Cables Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing market in general and Shell Nigeria The Wikileaks Cables Case Study Solution in specific. These elements include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used 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
Shell Nigeria The Wikileaks Cables Case Study Solution has specific strengths that can be made use of to minimize the risks, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Shell Nigeria The Wikileaks Cables Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position enables the company to think about a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase constraints for the company in implementing its development program. The weak points of Shell Nigeria The Wikileaks Cables Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Shell Nigeria The Wikileaks Cables Case Study Solution as well, but the development could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned certain dangers to Shell Nigeria The Wikileaks Cables Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Shell Nigeria The Wikileaks Cables Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be determined. The total financial efficiency of the business might be evaluated by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Shell Nigeria The Wikileaks Cables Case Study Analysis is growing and the business is rather efficient in bring in a large number of clients at a potential rate.
In addition to it, the 2nd graph which reveals the annual growth in the Shell Nigeria The Wikileaks Cables Case Study Help overall assets, reveals that the business is rather effective in adding worth to its properties through its revenues. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis concerning the distribution of total revenues of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different 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 business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the general political forces impacting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Shell Nigeria The Wikileaks Cables Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies related to the import of books impact the total business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative materials etc. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Shell Nigeria The Wikileaks Cables Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Shell Nigeria The Wikileaks Cables Case Study Help includes the concerns of ecological 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 needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-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.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files provided in the virtual libraries on particular websites. The altering consumer preferences towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Shell Nigeria The Wikileaks Cables 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 total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Shell Nigeria The Wikileaks Cables Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks third and second in numerous market segments, with a major focus on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Shell Nigeria The Wikileaks Cables Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate option to prevent the declining market growth. Introduction of digital publishing might prove to be an instant option with low amount of threat for the business. However, the business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially collects the information related to the consumer demand, the prospective markets, the government guidelines and the data related to the competitors provided in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, revealing a danger to the business's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
