Air Canada Defined Benefit Pension Plan Case Study Solution and Analysis
Intro
Air Canada Defined Benefit Pension Plan Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering information, processing details and communication services. Major service segments of the business include; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Air Canada Defined Benefit Pension Plan Case Study Analysis has actually become a specialized details provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Air Canada Defined Benefit Pension Plan Case Study Help in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of 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 Canada Defined Benefit Pension Plan Case Study Solution has specific strengths that can be made use of to lower the risks, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Air Canada Defined Benefit Pension Plan Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the company to consider numerous development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase constraints for the business in executing its development program. The weak points of Air Canada Defined Benefit Pension Plan Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Air Canada Defined Benefit Pension Plan Case Study Solution as well, however the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has postured specific risks to Air Canada Defined Benefit Pension Plan Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Air Canada Defined Benefit Pension Plan Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry in addition to existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be calculated. However, the total monetary efficiency of the company could be evaluated by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Air Canada Defined Benefit Pension Plan Case Study Solution is growing and the company is quite efficient in attracting a large number of consumers at a possible rate.
In addition to it, the 2nd chart which shows the yearly growth in the Air Canada Defined Benefit Pension Plan Case Study Solution overall properties, shows that the company is rather efficient in including worth to its possessions through its earnings. The growth in assets shows that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis regarding the distribution of total incomes of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Air Canada Defined Benefit Pension Plan Case Study Help business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Air Canada Defined Benefit Pension Plan Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books affect the general organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Air Canada Defined Benefit Pension Plan Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits 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 examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Air Canada Defined Benefit Pension Plan Case Study Analysis include the suppliers of the paper for releasing 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.
Haggling 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 marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Air Canada Defined Benefit Pension Plan Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing market development. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the data connected to the customer need, the possible markets, the federal government policies and the information related to the rivals provided in the market. After that, the business should decide one prospective sector for its initial offering. It must collect research study that how it could separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the preliminary offering. If the preliminary offering shows a success, the business needs to choose the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a threat to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
