Dubai Duty Free Case Study Solution and Analysis
Dubai Duty Free Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in general and Dubai Duty Free Case Study Analysis in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
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 capabilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Dubai Duty Free Case Study Solution has particular strengths that can be made use of to minimize the threats, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Dubai Duty Free Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the company to consider several development opportunities without any fear of raising fund externally.
In addition to the strengths, the company has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weak points of Dubai Duty Free Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods 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 expansion plans to prevent its dependence over the Chinese markets to attain long term development.
The growth of the publishing market is declining because 2008, impacting Dubai Duty Free Case Study Analysis as well, however the growth could be restored by availing specific opportunities presented 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 customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented certain dangers to Dubai Duty Free Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Dubai Duty Free Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with presence of high competition increases the danger of losing the customer base.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be computed. Nevertheless, the total financial performance of the business might be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Dubai Duty Free Case Study Solution is growing and the company is quite effective in attracting a large number of consumers at a potential cost.
Along with it, the second graph which reveals the annual development in the Dubai Duty Free Case Study Analysis total properties, reveals that the company is rather effective in including worth to its assets through its profits. The development in properties shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the circulation of total profits of the company. Huge part of the earnings of CMP originates 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 possible development to accomplish its future advancement objective.
PESTEL analysis could be conducted to discover the different external forces affecting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Dubai Duty Free Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books impact the total organisation at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful products etc. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the Dubai Duty Free Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Dubai Duty Free Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Dubai Duty Free Case Study Solution consist of the providers of the paper for releasing 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 Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
CMP operates in a highly competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Dubai Duty Free Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in numerous market sections, with a significant focus on instructional publications. CIP functions as a risk 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 marketplace share of Dubai Duty Free Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors 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 market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the decreasing industry growth. Intro of digital publishing could show to be an instant option with low amount of threat for the business. 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 item portfolio, the company ought to initially gathers the data related to the customer demand, the prospective markets, the federal government policies and the information related to the rivals presented in the market. If the initial 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.
The growth of the publishing market is decreasing because 2008, showing a risk to the business's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the new markets.