The Offshore Drilling Industry In 2011 2 Case Study Solution and Analysis
Introduction
The Offshore Drilling Industry In 2011 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and The Offshore Drilling Industry In 2011 2 Case Study Analysis in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important 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 Offshore Drilling Industry In 2011 2 Case Study Solution has particular strengths that can be made use of to decrease the dangers, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Offshore Drilling Industry In 2011 2 Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider numerous development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in executing its advancement program. The weak points of The Offshore Drilling Industry In 2011 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining because 2008, affecting The Offshore Drilling Industry In 2011 2 Case Study Analysis as well, but the development might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain threats to The Offshore Drilling Industry In 2011 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of The Offshore Drilling Industry In 2011 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors 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 strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry together with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be calculated. The general monetary performance of the company might be analyzed by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of The Offshore Drilling Industry In 2011 2 Case Study Solution is growing and the business is rather effective in attracting a large number of customers at a prospective rate.
Along with it, the second chart which reveals the annual development in the The Offshore Drilling Industry In 2011 2 Case Study Analysis overall properties, shows that the company is rather efficient in adding worth to its assets through its earnings. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the distribution of total earnings of the business. Major part of the incomes 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 service sectors with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting The Offshore Drilling Industry In 2011 2 Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on particular sites. The altering consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Offshore Drilling Industry In 2011 2 Case Study Help consist of 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 provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Offshore Drilling Industry In 2011 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to avoid the decreasing market development. Intro of digital publishing might show to be an instant solution with low amount of risk for the company. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to first collects the data associated with the customer need, the possible markets, the government regulations and the information associated with the competitors presented in the market. After that, the business must decide one possible sector for its initial offering. It needs to gather research study that how it could separate its digital publishing from the existing competitors' products. The actions above the company 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 business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a threat to the company's long term existence, but the circumstance can be managed by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
