The Global Oil And Gas Industry 2 Case Study Solution and Analysis
Introduction
The Global Oil And Gas Industry 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, The Global Oil And Gas Industry 2 Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
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 important experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Global Oil And Gas Industry 2 Case Study Help has certain strengths that can be made use of to decrease the hazards, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Global Oil And Gas Industry 2 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong financial position permits the company to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its development program. The weak points of The Global Oil And Gas Industry 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining since 2008, affecting The Global Oil And Gas Industry 2 Case Study Help too, however the growth could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually presented certain hazards to The Global Oil And Gas Industry 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Global Oil And Gas Industry 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. The total financial performance of the company could be analyzed by using the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Global Oil And Gas Industry 2 Case Study Help is growing and the company is rather effective in drawing in a large number of customers at a prospective rate.
Along with it, the second chart which reveals the yearly development in the The Global Oil And Gas Industry 2 Case Study Help total properties, reveals that the business is quite efficient in adding worth to its assets through its incomes. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of overall profits of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be said that the overall political forces impacting The Global Oil And Gas Industry 2 Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Global Oil And Gas Industry 2 Case Study Solution consists of the concerns of environmental neighborhoods over the use 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 needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry 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 rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Global Oil And Gas Industry 2 Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Global Oil And Gas Industry 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sections, with a major concentrate on educational publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of The Global Oil And Gas Industry 2 Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 company sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the business require an instant solution to prevent the decreasing industry growth. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of threat for the business. The company might 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 company must first collects the data related to the customer demand, the possible markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
