Airbnb 4 Case Study Solution and Analysis
Airbnb 4 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and Airbnb 4 Case Study Solution in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Airbnb 4 Case Study Analysis has specific strengths that can be utilized to minimize the threats, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Airbnb 4 Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the company to think about several advancement chances with no fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which could increase restraints for the company in executing its development program. The weak points of Airbnb 4 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business 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 needs to propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is declining given that 2008, impacting Airbnb 4 Case Study Solution too, but the growth could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
The changing macro trends in the market and increasing competition in the publishing market has posed certain threats to Airbnb 4 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Airbnb 4 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the hazard of losing the consumer base.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the total financial efficiency of the company might be analyzed by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Airbnb 4 Case Study Solution is growing and the business is quite effective in drawing in a a great deal of consumers at a possible price.
Together with it, the second chart which shows the yearly development in the Airbnb 4 Case Study Help total assets, reveals that the business is quite effective in including value to its properties through its profits. The development in properties reveals that the total value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given data could be the analysis concerning the circulation of total revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective development to achieve its future advancement objective.
PESTEL analysis could be conducted to find out 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 provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Airbnb 4 Case Study Analysis business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products etc. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the Airbnb 4 Case Study Help. However, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Airbnb 4 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 needed to be disposable 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 regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Airbnb 4 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 market saturation, the buyers needs high quality documents at competitive prices.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Airbnb 4 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in different market sectors, with a significant focus on instructional publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Airbnb 4 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 sectors to the new one can lead the business to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market growth. The business might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first gathers the information related to the consumer demand, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing since 2008, revealing a danger to the company's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.