The October 2009 Petrobras Bond Issue A Case Study Solution and Analysis
Introduction
The October 2009 Petrobras Bond Issue A Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering details, processing info and interaction services. Major organisation sections of the business consist of; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports and so on. The October 2009 Petrobras Bond Issue A Case Study Help has actually ended up being a specialized details service provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and The October 2009 Petrobras Bond Issue A Case Study Help in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation 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 abilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The October 2009 Petrobras Bond Issue A Case Study Analysis has specific strengths that can be made use of to decrease the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The October 2009 Petrobras Bond Issue A Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position enables the company to think about several development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of The October 2009 Petrobras Bond Issue A Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting The October 2009 Petrobras Bond Issue A Case Study Analysis as well, but the growth might be restored by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has posed particular threats to The October 2009 Petrobras Bond Issue A Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The October 2009 Petrobras Bond Issue A Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly overall earnings of The October 2009 Petrobras Bond Issue A Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in drawing in a large number of clients at a possible price.
Together with it, the 2nd chart which shows the annual development in the The October 2009 Petrobras Bond Issue A Case Study Help overall possessions, reveals that the business is quite effective in including worth to its assets through its earnings. The growth in possessions shows that the overall worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis concerning the distribution of overall incomes of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting The October 2009 Petrobras Bond Issue A Case Study Solution company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the The October 2009 Petrobras Bond Issue A Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books impact the total business at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out helpful products etc. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the The October 2009 Petrobras Bond Issue A Case Study Analysis. However, the consumer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting The October 2009 Petrobras Bond Issue A Case Study Analysis includes the issues of environmental neighborhoods over the use 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 damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the files provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
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 rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The October 2009 Petrobras Bond Issue A Case Study Help include the suppliers 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The October 2009 Petrobras Bond Issue A Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the declining industry development. Introduction of digital publishing might show to be an instant option with low amount of risk for the business. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must initially collects the data related to the consumer need, the potential markets, the government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a risk to the business's long term existence, but the circumstance can be managed by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
