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British Airways 2 Case Study Solution and Analysis


Introduction

British Airways 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Vital Issues

Although, British Airways 2 Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in specific. These elements include;

• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
Executive Summary
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business 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


British Airways 2 Case Study Help has certain strengths that can be used to reduce the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;

• The long term experience of British Airways 2 Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong financial position allows the company to think about a number of advancement chances without any worry of raising fund externally.

Weaknesses

In addition to the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of British Airways 2 Case Study Help are given as follows;

• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is decreasing considering that 2008, affecting British Airways 2 Case Study Solution as well, however the growth could be restored by availing specific chances provided in the market. The market chances for CMP consist of;

• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.

Hazards

The changing macro trends in the market and increasing competitors in the publishing market has positioned certain hazards to British Airways 2 Case Study Solution including;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of British Airways 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry together with presence of high competitors increases the hazard of losing the client base.

Monetary Analysis.
Swot Analysis
Due to lack of data, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual total incomes of British Airways 2 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is quite effective in bring in a large number of consumers at a potential cost.

In addition to it, the 2nd chart which shows the annual growth in the British Airways 2 Case Study Analysis total properties, shows that the company is rather efficient in adding worth to its possessions through its incomes. The growth in assets shows that the overall value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).

Another financial analysis of the company using the provided data could be the analysis relating to the circulation of total revenues of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a prospective growth to attain its future advancement goal.

PESTEL Analysis

PESTEL analysis could 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 quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces impacting British Airways 2 Case Study Analysis business are high. The government policies relating to the publishing sector are also increasing with the passage of time.

Cost-effective.

Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.

Social and Demographical.

The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.

Technological.

Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting British Airways 2 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires 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 individuals in the publishing sector.

Industry Analysis (Porter's Five Forces Model).

Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.

Hazard of New Entrants.

Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.

Risk of Replacement.

Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the danger of substitution for the market.

Competitive Competition.

Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market 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 providers of the British Airways 2 Case Study Solution consist of the providers of the paper for releasing files. 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 Purchaser.

Negotiating power of purchaser in the publishing industry 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.

Competitors Analysis.

CMP operates in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of British Airways 2 Case Study Solution include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts as a risk 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 present market circumstance.

Posts and telecommunication Press (PTP).

It was likewise established in the same duration as British Airways 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its products in the market.

Recommendations

As the choices are shifting towards digital publishing and the business need an instant option to prevent the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data related to the customer need, the prospective markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering shows a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.

Conclusion

The development of the publishing industry is declining because 2008, revealing a hazard to the company's long term existence, however the scenario can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.

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