The Offshore Drilling Industry In 2011 Case Study Solution and Analysis
Introduction
The Offshore Drilling Industry In 2011 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing details and communication services. Major service sections of the business include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major products consist of books, regulars, online media, exhibits, research study reports and so on. The Offshore Drilling Industry In 2011 Case Study Help has actually ended up being a specialized info service provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and The Offshore Drilling Industry In 2011 Case Study Solution in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 Case Study Analysis has certain strengths that can be made use of to lower the hazards, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Offshore Drilling Industry In 2011 Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong financial position permits the business to consider numerous development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restraints for the company in executing its development program. The weaknesses of The Offshore Drilling Industry In 2011 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard ways 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 expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting The Offshore Drilling Industry In 2011 Case Study Solution too, however the growth could be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has posed particular dangers to The Offshore Drilling Industry In 2011 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of The Offshore Drilling Industry In 2011 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry in addition to presence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be determined. The general financial performance of the business could be analyzed by using the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of The Offshore Drilling Industry In 2011 Case Study Analysis is growing and the company is rather effective in bring in a a great deal of consumers at a prospective price.
Along with it, the 2nd graph which reveals the annual development in the The Offshore Drilling Industry In 2011 Case Study Solution total possessions, reveals that the company is rather effective in adding worth to its assets through its incomes. The development in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the given data might be the analysis relating to the circulation of overall profits of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the The Offshore Drilling Industry In 2011 Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books impact the total company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful materials etc. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the The Offshore Drilling Industry In 2011 Case Study Solution. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Offshore Drilling Industry In 2011 Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the digital libraries on particular websites. The changing customer choices towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence 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 marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Offshore Drilling Industry In 2011 Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Offshore Drilling Industry In 2011 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information associated with the customer need, the prospective markets, the federal government guidelines and the data connected to the rivals presented in the market. After that, the company should choose one potential section for its initial offering. It must collect research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company ought to go for the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, revealing a hazard to the business's long term existence, however the scenario can be managed by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
