Airwide International Case Study Solution and Analysis
Introduction
Airwide International Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing details and interaction services. Significant business segments of the business consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. Airwide International Case Study Help has actually ended up being a specialized information provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Airwide International Case Study Solution in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining 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 numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Airwide International Case Study Help has specific strengths that can be made use of to reduce the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Airwide International Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong monetary position enables the business to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of Airwide International Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining since 2008, impacting Airwide International Case Study Help as well, however the growth might be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has posed particular hazards to Airwide International Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Airwide International Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market together with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be determined. Nevertheless, the total financial efficiency of the business might be examined by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Airwide International Case Study Help is growing and the business is quite effective in drawing in a a great deal of consumers at a potential cost.
Together with it, the second graph which reveals the yearly growth in the Airwide International Case Study Help total properties, shows that the business is rather effective in adding worth to its properties through its earnings. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis regarding the circulation of total profits of the business. Huge 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 company might move towards other service sections with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Airwide International Case Study Solution in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the economic policies related to the import of books impact the total organisation at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Airwide International Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed 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 Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the virtual libraries on particular sites. The changing customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Airwide International Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Airwide International Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an instant solution to prevent the declining industry development. The business 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 should initially collects the data related to the customer demand, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, revealing a threat to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
