Air Canada Risk Management Case Study Solution and Analysis
Intro
Air Canada Risk Management Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing information and interaction services. Major service segments of the company consist of; books, regulars, consultancy and circulation. The business has a huge item portfolio and its significant products include books, periodicals, online media, exhibits, research study reports etc. Air Canada Risk Management Case Study Solution has ended up being a specialized details service 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
Although, Air Canada Risk Management Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business 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 Risk Management Case Study Help has particular strengths that can be utilized to decrease the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Air Canada Risk Management Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position enables the business to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Air Canada Risk Management Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining since 2008, impacting Air Canada Risk Management Case Study Analysis as well, however the growth might be revived by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain threats to Air Canada Risk Management Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Air Canada Risk Management Case Study Solution due to the customer shift towards digital 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 competitors can get a strong consumer base by using particular methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the company might be examined by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Air Canada Risk Management Case Study Help is growing and the company is rather efficient in attracting a large number of clients at a potential rate.
In addition to it, the 2nd graph which reveals the yearly development in the Air Canada Risk Management Case Study Help overall properties, shows that the company is rather effective in adding worth to its possessions through its earnings. The development in properties shows that the total value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis relating to the circulation of total earnings of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative products and so on. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Air Canada Risk Management Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Air Canada Risk Management Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the virtual libraries on specific sites. The altering customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Air Canada Risk Management Case Study Solution consist of the providers of the paper for publishing files. 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 Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Air Canada Risk Management Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Air Canada Risk Management Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business need an instant solution to prevent the declining market development. Therefore, intro of digital publishing could prove to be an instant service with low amount of danger for the business. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must initially gathers the data associated with the customer need, the prospective markets, the government regulations and the data related to the rivals presented in the market. After that, the business needs to choose one prospective segment for its initial offering. It should gather research that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the company need to opt for the preliminary offering. If the initial offering proves a success, the business should 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 because 2008, showing a threat to the company's long term presence, but the scenario can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
