The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Solution and Analysis
Introduction
The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help has specific strengths that can be used to decrease the threats, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position permits the company to consider several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase restraints for the company in implementing its advancement program. The weak points of The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Solution too, however the growth might be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually postured particular dangers to The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Analysis 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 rivals can gain a strong consumer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly overall incomes of The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in drawing in a large number of consumers at a prospective price.
Along with it, the 2nd graph which shows the annual development in the The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Analysis overall properties, reveals that the company is quite effective in adding worth to its assets through its profits. The development in properties shows that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis regarding the circulation of total earnings of the company. Major part of the incomes 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 business sections with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading helpful products and so on. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Solution includes the concerns of environmental neighborhoods over the usage 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 hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks third and second in numerous market sectors, with a major concentrate on educational publications. CIP functions as a risk 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 market share of The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the declining industry development. Therefore, intro of digital publishing might show to be an instant service with low amount of danger for the company. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the information related to the customer demand, the possible markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a threat to the company's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
