Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution and Analysis
Introduction
Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution has specific strengths that can be utilized to lower the dangers, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the company to consider a number of development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restrictions for the business in executing its development program. The weaknesses of Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution as well, however the development could be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain threats to Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly overall revenues of Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is quite effective in bring in a large number of consumers at a prospective cost.
Along with it, the 2nd graph which shows the yearly growth in the Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution total possessions, shows that the company is rather efficient in including worth to its properties through its earnings. The development in assets shows that the overall value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the circulation of total revenues of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out helpful materials etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized 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.
Legal policies 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 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the files presented in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the risk of substitution for the industry.
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. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Emirates Airline A Billion Dollar Sukuk Bond Issue 4 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in various market segments, with a significant focus on educational publications. CIP serves as a risk 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 4 Case Study Help easily in the current market circumstance.
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 terms of business scale. It is also one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant service to prevent the decreasing industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the information related to the customer need, the prospective markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, showing a threat to the business's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.
