Air Canada West Jet Group Assignment Case Study Solution and Analysis
Air Canada West Jet Group Assignment Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Air Canada West Jet Group Assignment Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of 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 company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Air Canada West Jet Group Assignment Case Study Analysis has certain strengths that can be made use of to reduce the dangers, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Air Canada West Jet Group Assignment Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position allows the business to think about numerous development opportunities with no worry of raising fund externally.
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of Air Canada West Jet Group Assignment Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term development.
The development of the publishing market is decreasing considering that 2008, affecting Air Canada West Jet Group Assignment Case Study Help as well, however the development could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned certain dangers to Air Canada West Jet Group Assignment Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Air Canada West Jet Group Assignment Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the danger of losing the client base.
Due to absence of information, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the annual total incomes of Air Canada West Jet Group Assignment Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in drawing in a big number of clients at a possible cost.
Along with it, the 2nd graph which shows the annual development in the Air Canada West Jet Group Assignment Case Study Analysis total assets, shows that the business is quite efficient in including value to its properties through its earnings. The growth in assets shows that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis regarding the circulation of overall revenues of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a prospective growth to attain its future development goal.
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Air Canada West Jet Group Assignment Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall service at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products etc. China has the highest population worldwide with a high population development, revealing the increasing variety of consumers of the Air Canada West Jet Group Assignment Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering customer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental forces affecting Air Canada West Jet Group Assignment Case Study Solution includes the issues of environmental neighborhoods over the use 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 needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on specific websites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Air Canada West Jet Group Assignment Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
CMP operates in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Air Canada West Jet Group Assignment Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Air Canada West Jet Group Assignment Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior concentrate 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.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the declining market development. Intro of digital publishing might show to be an instant service with low quantity of threat for the business. The company could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data related to the consumer need, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is decreasing considering that 2008, showing a threat to the business's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.