Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution and Analysis
Introduction
Should Cairn India Venture Into Offshore Drilling 3 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Should Cairn India Venture Into Offshore Drilling 3 Case Study Help has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in particular. These elements consist of;
• 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 technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution has specific strengths that can be used to lower the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the business to think about a number of development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase restraints for the business in executing its advancement program. The weak points of Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining because 2008, affecting Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution as well, but the development might be restored by availing particular chances provided in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific threats to Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the annual overall revenues of Should Cairn India Venture Into Offshore Drilling 3 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a prospective price.
Along with it, the 2nd chart which reveals the yearly development in the Should Cairn India Venture Into Offshore Drilling 3 Case Study Help total possessions, shows that the business is quite efficient in adding value to its possessions through its incomes. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis concerning the distribution of overall incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Should Cairn India Venture Into Offshore Drilling 3 Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books impact the overall business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Should Cairn India Venture Into Offshore Drilling 3 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations 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 Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the files presented in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Should Cairn India Venture Into Offshore Drilling 3 Case Study Analysis consist of the providers of the paper for publishing 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 Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Should Cairn India Venture Into Offshore Drilling 3 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 period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a major focus on instructional 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 marketplace share of Should Cairn India Venture Into Offshore Drilling 3 Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an instant option to avoid the declining industry development. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the information related to the customer demand, the potential markets, the federal government regulations and the data related to the competitors presented in the market. After that, the company should decide one possible sector for its preliminary offering. It ought to collect research that how it might differentiate its digital publishing from the existing competitors' products. The steps above the company must go for the initial offering. If the initial offering shows a success, the company ought to go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, but the situation can be controlled by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
