The Offshore Oil Drilling Case Study Solution and Analysis
Introduction
The Offshore Oil Drilling Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has invested 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 Oil Drilling Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Offshore Oil Drilling Case Study Help has particular strengths that can be made use of to reduce the risks, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Offshore Oil Drilling Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong financial position allows the company to consider several advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase restrictions for the business in executing its development program. The weak points of The Offshore Oil Drilling Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting The Offshore Oil Drilling Case Study Solution as well, however the growth could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain dangers to The Offshore Oil Drilling Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of The Offshore Oil Drilling Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be computed. The total monetary efficiency of the business might be examined by using the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of The Offshore Oil Drilling Case Study Help is growing and the company is quite efficient in attracting a a great deal of consumers at a possible rate.
Together with it, the second graph which shows the annual growth in the The Offshore Oil Drilling Case Study Analysis total properties, reveals that the business is rather effective in adding worth to its assets through its earnings. The development in assets reveals that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis concerning the circulation of overall earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the The Offshore Oil Drilling Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the overall company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative materials etc. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the The Offshore Oil Drilling Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Offshore Oil Drilling Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the documents presented in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Offshore Oil Drilling Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. 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 Analysis consist of;.
• Chemical Market 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 might wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an immediate option to prevent the declining market development. Introduction of digital publishing could prove to be an immediate service with low quantity of risk for the business. Nevertheless, the business could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must first gathers the data related to the customer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a threat to the company's long term presence, however the situation can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
