The Global Oil And Gas Industry 2010 Case Study Solution and Analysis
Introduction
The Global Oil And Gas Industry 2010 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing information and interaction services. Major business segments of the business include; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. The Global Oil And Gas Industry 2010 Case Study Help has become a specialized info service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, The Global Oil And Gas Industry 2010 Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Global Oil And Gas Industry 2010 Case Study Analysis has particular strengths that can be utilized to decrease the dangers, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Global Oil And Gas Industry 2010 Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position allows the company to think about several development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its development program. The weaknesses of The Global Oil And Gas Industry 2010 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting The Global Oil And Gas Industry 2010 Case Study Help too, but the growth might be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned particular dangers to The Global Oil And Gas Industry 2010 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of The Global Oil And Gas Industry 2010 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market in addition to presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be calculated. The general financial efficiency of the business might be examined by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of The Global Oil And Gas Industry 2010 Case Study Solution is growing and the company is quite effective in bring in a a great deal of clients at a possible cost.
In addition to it, the 2nd graph which shows the yearly growth in the The Global Oil And Gas Industry 2010 Case Study Analysis total assets, shows that the company is rather efficient in including value to its properties through its revenues. The growth in assets reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis regarding the circulation of total profits of the company. Major part of the revenues 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 company sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting The Global Oil And Gas Industry 2010 Case Study Solution business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the The Global Oil And Gas Industry 2010 Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the overall organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful products etc. China has the greatest population worldwide with a high population development, revealing the increasing number of customers of the The Global Oil And Gas Industry 2010 Case Study Solution. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The Global Oil And Gas Industry 2010 Case Study Solution includes the concerns of ecological 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the digital libraries on specific sites. The changing consumer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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 competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Global Oil And Gas Industry 2010 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry 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 rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The business 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 2010 Case Study Analysis 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 duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a major focus on academic publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Global Oil And Gas Industry 2010 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as The Global Oil And Gas Industry 2010 Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present 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 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 organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate option to avoid the decreasing industry growth. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the consumer demand, the prospective markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a hazard to the company's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
