Easy Jet Case Study Solution and Analysis
Intro
Easy Jet Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in basic and Easy Jet Case Study Analysis in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Easy Jet Case Study Analysis has particular strengths that can be utilized to lower the hazards, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Easy Jet Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position enables the company to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which could increase restrictions for the business in executing its development program. The weak points of Easy Jet Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting Easy Jet Case Study Solution as well, however the growth might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has posed certain hazards to Easy Jet Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Easy Jet Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number 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 consumer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall profits of Easy Jet Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in attracting a large number of clients at a prospective rate.
Along with it, the second chart which shows the yearly growth in the Easy Jet Case Study Analysis overall possessions, shows that the business is quite effective in including worth to its possessions through its profits. The growth in possessions shows that the total worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis regarding the distribution of overall profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces impacting Easy Jet Case Study Analysis organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Easy Jet Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies related to the import of books affect the general business at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative materials and so on. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Easy Jet Case Study Solution. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Easy Jet Case Study Solution consists of the concerns of environmental communities 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 must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive competition 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. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Easy Jet Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Easy Jet Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Easy Jet Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an instant option to avoid the decreasing industry growth. Therefore, intro of digital publishing might show to be an immediate service with low amount of threat for the business. The business might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business needs to first collects the information related to the customer demand, the possible markets, the government policies and the data related to the competitors presented in the market. After that, the company should decide one potential sector for its initial offering. It ought to gather research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the business need to go for the preliminary offering. If the preliminary offering proves a success, the business needs to choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a risk to the business's long term existence, but the circumstance can be managed by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
