Air Canada West Jet Group Assignment Case Study Solution and Analysis
Air Canada West Jet Group Assignment 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 including; gathering info, processing information and interaction services. Significant company sections of the business include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Air Canada West Jet Group Assignment Case Study Solution has actually become a specialized info company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in general and Air Canada West Jet Group Assignment Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 situation? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Air Canada West Jet Group Assignment Case Study Solution has specific strengths that can be used to decrease the risks, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Air Canada West Jet Group Assignment Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position enables the company 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 company in executing its advancement program. The weak points of Air Canada West Jet Group Assignment Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing industry is declining since 2008, impacting Air Canada West Jet Group Assignment Case Study Analysis as well, however the growth could be restored by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
The changing macro trends in the market and increasing competition in the publishing industry has presented certain hazards to Air Canada West Jet Group Assignment Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Air Canada West Jet Group Assignment Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the danger of losing the customer base.
Due to absence of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual overall revenues of Air Canada West Jet Group Assignment Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a prospective rate.
Along with it, the second chart which reveals the annual growth in the Air Canada West Jet Group Assignment Case Study Analysis total assets, shows that the business is rather efficient in adding worth to its possessions through its revenues. The development in properties reveals that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the circulation of overall profits of the company. Major 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 company might move towards other business sectors with a potential development to accomplish its future advancement goal.
PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the company and the current patterns 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 impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces impacting Air Canada West Jet Group Assignment Case Study Help company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Air Canada West Jet Group Assignment Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry in the publishing industry 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 rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Air Canada West Jet Group Assignment Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
CMP runs in an extremely competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Air Canada West Jet Group Assignment Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Air Canada West Jet Group Assignment Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors 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 company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate service to avoid the declining industry development. Intro of digital publishing could prove to be an immediate service with low quantity of risk for the business. The business could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information related to the customer need, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is declining since 2008, revealing a danger to the company's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.