Yellowhead Petroleum Limited 2 Case Study Solution and Analysis
Introduction
Yellowhead Petroleum Limited 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Yellowhead Petroleum Limited 2 Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised a number of concerns 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 utilized 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
Yellowhead Petroleum Limited 2 Case Study Analysis has specific strengths that can be used to decrease the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Yellowhead Petroleum Limited 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong financial position permits the company to consider numerous advancement opportunities 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 implementing its advancement program. The weaknesses of Yellowhead Petroleum Limited 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Yellowhead Petroleum Limited 2 Case Study Help as well, but the development could be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has presented specific dangers to Yellowhead Petroleum Limited 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Yellowhead Petroleum Limited 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry along with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the yearly total profits of Yellowhead Petroleum Limited 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a large number of clients at a potential rate.
Together with it, the second graph which shows the yearly development in the Yellowhead Petroleum Limited 2 Case Study Solution total possessions, shows that the business is quite efficient in including value to its possessions through its incomes. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the circulation of total incomes of the business. Major part of the profits of CMP comes from the sales of its published 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 development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Yellowhead Petroleum Limited 2 Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Yellowhead Petroleum Limited 2 Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the general company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful products etc. China has the highest population on the planet with a high population growth, showing the increasing number of customers of the Yellowhead Petroleum Limited 2 Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Yellowhead Petroleum Limited 2 Case Study Solution consists of the issues of environmental neighborhoods 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 needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Yellowhead Petroleum Limited 2 Case Study Solution include 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 provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Yellowhead Petroleum Limited 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and third in numerous market sections, with a significant focus 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 could wean the market share of Yellowhead Petroleum Limited 2 Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Yellowhead Petroleum Limited 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. The business could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first gathers the data associated with the customer demand, the prospective markets, the government regulations and the information connected to the rivals provided in the market. After that, the company needs to choose one possible segment for its initial offering. It must collect research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the business ought to go for the preliminary offering. If the preliminary offering proves a success, the company should opt for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a threat to the company's long term presence, however the scenario can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
