Air Arabia Case Study Solution and Analysis
Introduction
Air Arabia Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Air Arabia Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Air Arabia Case Study Solution has certain strengths that can be made use of to lower the risks, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Air Arabia Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position enables the company to think about several development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of Air Arabia Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Air Arabia Case Study Solution as well, however the development might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might also present 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 expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed particular threats to Air Arabia Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Air Arabia Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market together with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be determined. However, the general monetary performance of the business might be analyzed by utilizing the graphs given up the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Air Arabia Case Study Analysis is growing and the business is rather effective in drawing in a large number of clients at a prospective rate.
Together with it, the 2nd graph which reveals the yearly growth in the Air Arabia Case Study Solution overall properties, shows that the company is rather effective in adding value to its properties through its profits. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis regarding the circulation of total profits of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the performance of the business and the current trends 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 impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful products etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Air Arabia Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Air Arabia Case Study Help 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 disposable and the ink used while publishing must 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 approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the digital libraries on particular websites. The changing customer choices towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Air Arabia Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Air Arabia Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Air Arabia Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat 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 product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant option to prevent the declining market growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first collects the data associated with the consumer demand, the potential markets, the federal government regulations and the data associated with the rivals provided in the market. After that, the company needs to decide one potential section for its initial offering. It ought to gather research study that how it might distinguish its digital publishing from the existing competitors' items. The steps above the company need to go for the preliminary offering. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a hazard to the business's long term presence, however the circumstance can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
