Air Arabia Case Study Solution and Analysis
Air Arabia Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and Air Arabia Case Study Analysis in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change 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 important experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Air Arabia Case Study Help has specific strengths that can be made use of to minimize the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Air Arabia Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the company to consider a number of advancement opportunities with no fear of raising fund externally.
Along with the strengths, the company has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Air Arabia Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is declining considering that 2008, impacting Air Arabia Case Study Solution too, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned particular risks to Air Arabia Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Air Arabia Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the threat of losing the consumer base.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall revenues of Air Arabia Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in attracting a large number of consumers at a potential rate.
In addition to it, the 2nd graph which shows the yearly development in the Air Arabia Case Study Solution overall properties, reveals that the company is quite efficient in including worth to its assets through its earnings. The development in properties shows that the overall value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis relating to the distribution of total revenues of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a potential growth to attain its future advancement objective.
PESTEL analysis might be conducted to find out the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Air Arabia Case Study Solution 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 used while publishing ought to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the digital libraries on particular websites. The changing customer preferences towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Air Arabia Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Air Arabia Case Study Analysis include;.
• 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Air Arabia Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company need an instant option to prevent the declining industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should first collects the information related to the customer demand, the possible markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing industry is declining since 2008, revealing a risk to the business's long term presence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.