Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Solution and Analysis
Emirates Airline A Billion Dollar Sukuk Bond Issue 3 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 details, processing information and interaction services. Significant organisation segments of the business include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Solution has ended up being a specialized information company and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Help in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation 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 advancement unceasingly? How could the business sustain its long term competitive position in future?
Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Solution has particular strengths that can be utilized to lower the risks, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong monetary position enables the business to consider numerous development opportunities with no fear of raising fund externally.
In addition to the strengths, the company has particular weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Solution are given as follows;
• Despite of being a science and technology 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 must propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is declining considering that 2008, affecting Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis as well, but the development could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned certain threats to Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market along with existence of high competition increases the danger of losing the client base.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly overall incomes of Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a big number of consumers at a prospective price.
In addition to it, the second graph which shows the annual development in the Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis overall properties, reveals that the company is rather efficient in including value to its properties through its profits. The growth in properties shows that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the circulation of overall incomes of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a potential development to attain its future advancement objective.
PESTEL analysis could be performed to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents provided in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the risk of alternative for the market.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sectors, with a significant focus on instructional publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Emirates Airline A Billion Dollar Sukuk Bond Issue 3 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an immediate service to prevent the decreasing market development. Introduction of digital publishing could show to be an instant solution with low quantity of danger for the business. The business might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially collects the data related to the customer need, the potential markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, revealing a hazard to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.