The October 2009 Petrobras Bond Issue C Case Study Solution and Analysis
Intro
The October 2009 Petrobras Bond Issue C Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing details and interaction services. Significant business segments of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. The October 2009 Petrobras Bond Issue C Case Study Solution has actually ended up being a specialized information company and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing market in general and The October 2009 Petrobras Bond Issue C Case Study Help in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 business could be used 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 October 2009 Petrobras Bond Issue C Case Study Analysis has certain strengths that can be made use of to minimize the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The October 2009 Petrobras Bond Issue C Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the business to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of The October 2009 Petrobras Bond Issue C Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth 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 October 2009 Petrobras Bond Issue C Case Study Analysis too, however the development might be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has actually posed certain risks to The October 2009 Petrobras Bond Issue C Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of The October 2009 Petrobras Bond Issue C Case Study Help due to the customer shift towards virtual 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 get a strong customer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry in addition to presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be determined. The overall monetary efficiency of the business might be analyzed by utilizing the graphs given 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 annual demand of the items of The October 2009 Petrobras Bond Issue C Case Study Analysis is growing and the company is quite efficient in attracting a a great deal of clients at a prospective price.
In addition to it, the second chart which shows the annual growth in the The October 2009 Petrobras Bond Issue C Case Study Solution total assets, shows that the business is rather effective in including value to its possessions through its revenues. The development in properties reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis relating to the distribution of overall incomes of the business. 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 business could move towards other business sectors with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the The October 2009 Petrobras Bond Issue C Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the financial policies associated with the import of books impact the total business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The October 2009 Petrobras Bond Issue C Case Study Help includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies 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 Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market 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 marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The October 2009 Petrobras Bond Issue C Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The October 2009 Petrobras Bond Issue C Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and third in numerous market sectors, with a significant focus on educational publications. CIP acts as a hazard 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 marketplace share of The October 2009 Petrobras Bond Issue C Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as The October 2009 Petrobras Bond Issue C Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence 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 new markets.
• Time consuming.
Alernative-2: Introduce 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 value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the declining market development. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to initially collects the data connected to the customer demand, the prospective markets, the federal government policies and the information related to the competitors provided in the market. After that, the company should decide one possible sector for its preliminary offering. It ought to collect research study that how it might distinguish its digital publishing from the existing competitors' products. The actions above the business should go for the preliminary offering. The business ought to go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a threat to the business's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
