The Offshore Oil Drilling Case Study Solution and Analysis
The Offshore Oil Drilling Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, The Offshore Oil Drilling Case Study Help has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
The Offshore Oil Drilling Case Study Analysis has particular strengths that can be utilized to minimize the hazards, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Offshore Oil Drilling Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the company to consider a number of development chances with no fear of raising fund externally.
Along with the strengths, the company has particular weak points which might increase restraints for the business in implementing its advancement program. The weak points of The Offshore Oil Drilling Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company 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 should propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is declining considering that 2008, impacting The Offshore Oil Drilling Case Study Analysis as well, however the development might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has posed particular hazards to The Offshore Oil Drilling Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Offshore Oil Drilling Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry together with existence of high competition increases the danger of losing the consumer base.
Due to lack of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total revenues of The Offshore Oil Drilling Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in drawing in a large number of consumers at a potential price.
In addition to it, the 2nd chart which shows the yearly development in the The Offshore Oil Drilling Case Study Analysis overall properties, shows that the business is quite effective in including value to its properties through its revenues. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the circulation of total earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a prospective development to accomplish its future development goal.
PESTEL analysis might be carried out to learn the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting The Offshore Oil Drilling Case Study Help business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the The Offshore Oil Drilling Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies related to the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting The Offshore Oil Drilling Case Study Help includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Offshore Oil Drilling Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general 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 large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in a highly competitive industry with the presence of a great deal 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 Offshore Oil Drilling Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in different market segments, with a major concentrate on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of The Offshore Oil Drilling Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an immediate service to prevent the declining industry development. Therefore, introduction of digital publishing might prove to be an immediate service with low quantity of risk for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to first gathers the data connected to the consumer need, the possible markets, the government guidelines and the information associated with the rivals presented in the market. After that, the business ought to choose one potential segment for its initial offering. It ought to collect research that how it could separate its digital publishing from the existing rivals' items. The steps above the business ought to go for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining since 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.