Airbnb Organizational Structure Case Study Solution and Analysis
Intro
Airbnb Organizational Structure Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Airbnb Organizational Structure Case Study Solution in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised several 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 capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Airbnb Organizational Structure Case Study Help has particular strengths that can be made use of to decrease the threats, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Airbnb Organizational Structure Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the business to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Airbnb Organizational Structure Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Airbnb Organizational Structure Case Study Solution as well, but the growth might be revived by availing specific opportunities provided in the market. The market chances 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 might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned certain risks to Airbnb Organizational Structure Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Airbnb Organizational Structure Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal 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 using certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall incomes of Airbnb Organizational Structure Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in bring in a large number of clients at a potential price.
Together with it, the second graph which reveals the annual development in the Airbnb Organizational Structure Case Study Analysis total possessions, reveals that the company is quite efficient in adding worth to its possessions through its earnings. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis regarding the circulation of total earnings of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Airbnb Organizational Structure Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the overall organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the increase of digital publishing might decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Airbnb Organizational Structure Case Study Help includes the issues of environmental communities 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents presented in the digital libraries on specific sites. The altering customer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers 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 likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Airbnb Organizational Structure Case Study Analysis consist of the suppliers of the paper for releasing documents. 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 Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Airbnb Organizational Structure Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in various market sectors, with a major concentrate on instructional publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Airbnb Organizational Structure Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Airbnb Organizational Structure Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
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 brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the declining market growth. For that reason, introduction of digital publishing might show to be an instant service with low amount of risk for the business. Nevertheless, the company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to first collects the information associated with the consumer need, the possible markets, the government policies and the information related to the rivals presented in the market. After that, the company must choose one possible segment for its initial offering. It must gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the business should go for the preliminary offering. The company ought to go for the other markets if the initial offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, showing a danger to the business's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
