Air Transport Management Strategy Case Study Solution and Analysis
Air Transport Management Strategy 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; collecting information, processing details and interaction services. Significant service sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items include books, regulars, online media, exhibitions, research reports etc. Air Transport Management Strategy Case Study Help has become a specialized details provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Air Transport Management Strategy Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Air Transport Management Strategy Case Study Solution has certain strengths that can be used to minimize the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Air Transport Management Strategy Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position enables the company to consider several development chances with no worry of raising fund externally.
In addition to the strengths, the business has specific weak points which could increase restraints for the business in executing its advancement program. The weak points of Air Transport Management Strategy Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing market is decreasing since 2008, affecting Air Transport Management Strategy Case Study Help as well, but the growth might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned certain dangers to Air Transport Management Strategy Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Air Transport Management Strategy Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the hazard of losing the customer base.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. The overall monetary efficiency of the company could be evaluated by utilizing the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Air Transport Management Strategy Case Study Help is growing and the company is quite efficient in bring in a a great deal of customers at a prospective price.
Together with it, the 2nd graph which reveals the yearly growth in the Air Transport Management Strategy Case Study Help overall assets, shows that the company is quite effective in including worth to its properties through its incomes. The development in assets shows that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis regarding the distribution of overall incomes of the business. Major part of the earnings 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 service segments with a potential growth to accomplish its future development goal.
PESTEL analysis could be carried out to find out the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Air Transport Management Strategy Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Air Transport Management Strategy Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies connected to the import of books affect the total service at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out helpful products etc. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the Air Transport Management Strategy Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental forces affecting Air Transport Management Strategy Case Study Solution consists of the issues 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 policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the digital libraries on certain websites. The changing customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Air Transport Management Strategy Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 purchasers requires high quality documents at competitive prices.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Air Transport Management Strategy Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Air Transport Management Strategy Case Study Solution and CIP. It is also one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing industry development. For that reason, introduction of digital publishing could show to be an instant option with low amount of threat for the business. However, the company could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to initially gathers the data related to the consumer need, the prospective markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining considering that 2008, showing a hazard to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.