Airport Operations Assignment 2 Case Study Solution and Analysis
Airport Operations Assignment 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Airport Operations Assignment 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Airport Operations Assignment 2 Case Study Analysis has certain strengths that can be utilized to minimize the risks, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Airport Operations Assignment 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the company to consider numerous advancement chances without any worry of raising fund externally.
In addition to the strengths, the company has certain weak points which might increase restraints for the company in executing its advancement program. The weak points of Airport Operations Assignment 2 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 compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
The development of the publishing market is decreasing considering that 2008, impacting Airport Operations Assignment 2 Case Study Analysis as well, but the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing market has actually positioned certain risks to Airport Operations Assignment 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Airport Operations Assignment 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the risk of losing the consumer base.
The company has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be computed. Nevertheless, the overall financial performance of the company could be analyzed by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Airport Operations Assignment 2 Case Study Help is growing and the business is quite efficient in bring in a a great deal of customers at a potential price.
In addition to it, the 2nd chart which reveals the annual growth in the Airport Operations Assignment 2 Case Study Solution total properties, shows that the company is quite effective in including worth to its possessions through its profits. The development in possessions reveals that the overall value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given information could be the analysis concerning the circulation of overall revenues of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a potential growth to achieve its future advancement goal.
PESTEL analysis could be conducted to find out the numerous external forces affecting the efficiency 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 substantial impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces impacting Airport Operations Assignment 2 Case Study Analysis business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental forces impacting Airport Operations Assignment 2 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to 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 Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Airport Operations Assignment 2 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 rates.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Airport Operations Assignment 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Airport Operations Assignment 2 Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-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 company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the declining industry development. For that reason, intro of digital publishing might prove to be an immediate option with low amount of risk for the company. 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 product portfolio, the business must initially gathers the information related to the consumer need, the prospective markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term presence, however the scenario can be controlled by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.