Dubai Duty Free Case Study Solution and Analysis
Dubai Duty Free Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing information and interaction services. Major company segments of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products consist of books, regulars, online media, exhibitions, research study reports and so on. Dubai Duty Free Case Study Solution has actually become a specialized details supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Dubai Duty Free Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Dubai Duty Free Case Study Analysis has specific strengths that can be made use of to reduce the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Dubai Duty Free Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider a number of development opportunities without any fear of raising fund externally.
Together with the strengths, the business has specific weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Dubai Duty Free Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing market is decreasing because 2008, impacting Dubai Duty Free Case Study Analysis also, however the growth could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing market has presented particular hazards to Dubai Duty Free Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Dubai Duty Free 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 acquire a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market together with presence of high competitors increases the threat of losing the client base.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be computed. Nevertheless, the overall financial performance of the company could be evaluated by using the graphs given up the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Dubai Duty Free Case Study Analysis is growing and the company is quite efficient in bring in a large number of consumers at a prospective price.
Together with it, the second chart which reveals the yearly growth in the Dubai Duty Free Case Study Solution overall properties, shows that the company is rather effective in adding value to its assets through its profits. The development in properties shows that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information might be the analysis regarding the circulation of overall earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a potential growth to achieve its future advancement objective.
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Dubai Duty Free Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Dubai Duty Free Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies related to the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces impacting Dubai Duty Free Case Study Solution includes the issues of ecological 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 utilized while publishing must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the danger of substitution for the market.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Dubai Duty Free Case Study Analysis consist of the providers 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 supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 buyers needs high quality files at competitive rates.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Dubai Duty Free Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it could 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its items in the market.
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 development. As the choices are shifting towards digital publishing and the business require an immediate service to prevent the decreasing industry growth. Therefore, intro of digital publishing might show to be an instant solution with low quantity of danger for the company. The company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first gathers the data related to the customer demand, the potential markets, the federal government regulations and the information 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 method the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining since 2008, revealing a risk to the business's long term existence, however the situation can be managed by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.