Understanding The Oil Industry Of Kuwait Case Study Solution and Analysis
Introduction
Understanding The Oil Industry Of Kuwait Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Understanding The Oil Industry Of Kuwait Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Understanding The Oil Industry Of Kuwait Case Study Analysis has particular strengths that can be made use of to reduce the threats, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Understanding The Oil Industry Of Kuwait Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position allows the company to consider several advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of Understanding The Oil Industry Of Kuwait Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting Understanding The Oil Industry Of Kuwait Case Study Analysis also, however the growth might be revived by availing certain opportunities provided in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has postured specific threats to Understanding The Oil Industry Of Kuwait Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Understanding The Oil Industry Of Kuwait Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly overall profits of Understanding The Oil Industry Of Kuwait Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is rather efficient in attracting a large number of consumers at a prospective price.
Along with it, the second chart which shows the yearly growth in the Understanding The Oil Industry Of Kuwait Case Study Help total properties, shows that the company is quite efficient in adding value to its properties through its revenues. The growth in properties shows that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the circulation of overall earnings of the company. Huge part of the earnings 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 business segments with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Understanding The Oil Industry Of Kuwait Case Study Help company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Understanding The Oil Industry Of Kuwait Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Understanding The Oil Industry Of Kuwait Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Understanding The Oil Industry Of Kuwait Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 might wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Understanding The Oil Industry Of Kuwait Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-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 company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. Therefore, intro of digital publishing might prove to be an instant solution with low quantity of danger for the company. However, the business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the information related to the customer need, the possible markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a danger to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.
