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Air Arabia The Lone Survivor In Global Crises Case Solution

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Air Arabia The Lone Survivor In Global Crises Case Study Solution and Analysis


Introduction

Air Arabia The Lone Survivor In Global Crises Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information company and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.

Critical Concerns

CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and Air Arabia The Lone Survivor In Global Crises Case Study Help in particular. These aspects consist of;

• Entryway 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 technology.
Executive Summary
The improvement 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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


Air Arabia The Lone Survivor In Global Crises Case Study Analysis has certain strengths that can be used to decrease the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;

• The long term experience of Air Arabia The Lone Survivor In Global Crises Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position enables the business to consider numerous development opportunities without any fear of raising fund externally.

Weaknesses

Together with the strengths, the company has particular weaknesses which might increase restraints for the business in executing its advancement program. The weak points of Air Arabia The Lone Survivor In Global Crises Case Study Help are provided as follows;

• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable 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 accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is decreasing since 2008, impacting Air Arabia The Lone Survivor In Global Crises Case Study Analysis also, however the development could be restored by availing specific chances presented in the market. The market opportunities for CMP include;

• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.

Hazards

The altering macro patterns in the market and increasing competition in the publishing industry has posed particular dangers to Air Arabia The Lone Survivor In Global Crises Case Study Analysis consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Air Arabia The Lone Survivor In Global Crises Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard 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 items, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly overall revenues of Air Arabia The Lone Survivor In Global Crises Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a large number of customers at a possible rate.

Together with it, the 2nd graph which reveals the annual development in the Air Arabia The Lone Survivor In Global Crises Case Study Solution total properties, shows that the company is rather efficient in including value to its possessions through its profits. The growth in assets reveals that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).

Another monetary analysis of the company using the offered data could be the analysis concerning the distribution of overall incomes of the business. 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 company sectors with a possible development to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis might be carried out to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces impacting the publishing sector in general and the Air Arabia The Lone Survivor In Global Crises Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the total company at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.

Social and Demographical.

Social and demographical forces include the population growth, the consumer's choices towards checking out informative products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of customers of the Air Arabia The Lone Survivor In Global Crises Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Air Arabia The Lone Survivor In Global Crises Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.

Market Analysis (Porter's 5 Forces Model).

Porter's Five Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.

Risk of New Entrants.

Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.

Threat of Alternative.

Threat of Replacement is high for the Chinese Publishing Industry. The alternative items for the published files is the files presented in the digital libraries on particular websites. The changing customer preferences towards digital learning increase the danger of replacement for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.

Bargaining Power of Provider.

The major providers of the Air Arabia The Lone Survivor In Global Crises Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.

Rivals Analysis.

CMP runs in a highly competitive market with the presence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Air Arabia The Lone Survivor In Global Crises Case Study Help consist of;.

• Chemical Industry 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 easily in the present market scenario.

Posts and telecommunication Press (PTP).

It was likewise established in the same duration as Air Arabia The Lone Survivor In Global Crises Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.

Cons

• Competitors 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 business to lose demand 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 accomplish its future advancement. As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining industry development. Therefore, intro of digital publishing might show to be an immediate option with low amount of risk for the company. However, the business might also consider the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the business needs to first collects the data related to the customer need, the possible markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to 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 declining considering that 2008, showing a danger to the company's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.

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