Air Ink Case Study Solution and Analysis
Introduction
Air Ink Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing industry in general and Air Ink Case Study Solution in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Air Ink Case Study Analysis has certain strengths that can be used to decrease the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Air Ink Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong monetary position enables the company to consider numerous advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Air Ink Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Air Ink Case Study Help as well, but the growth could be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has presented specific risks to Air Ink Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Air Ink Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market along with presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be calculated. However, the total financial efficiency of the company might be analyzed by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Air Ink Case Study Help is growing and the business is rather efficient in bring in a large number of consumers at a potential cost.
Together with it, the second graph which shows the annual growth in the Air Ink Case Study Solution overall properties, reveals that the company is quite effective in adding value to its assets through its revenues. The growth in properties reveals that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis relating to the circulation of total revenues of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces impacting Air Ink Case Study Solution service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
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 general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products etc. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Air Ink Case Study Help. However, the consumer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Air Ink Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the digital libraries on specific sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Air Ink Case Study Solution consist of the suppliers 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 provider 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 requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Air Ink Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in numerous market sections, with a significant focus on instructional publications. CIP serves as a danger 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 Air Ink Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Air Ink Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant option to avoid the declining market development. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must initially collects the information related to the consumer demand, the possible markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a risk to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
