Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Solution and Analysis
Intro
Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and interaction services. Significant business sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports and so on. Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis has actually ended up being a specialized details service provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Solution has specific strengths that can be utilized to minimize the dangers, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong monetary position allows the business to think about several advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase constraints for the company in implementing its advancement program. The weak points of Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Help also, however the development might be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• 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 minimize its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has posed certain risks to Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be determined. Nevertheless, the general financial performance of the company could be examined by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis is growing and the business is quite efficient in bring in a a great deal of customers at a potential price.
Along with it, the second chart which reveals the yearly development in the Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Solution overall assets, reveals that the company is rather efficient in including worth to its possessions through its earnings. The growth in properties reveals that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the circulation of overall earnings 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 company might move towards other business segments with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision 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 overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the 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 need an instant service to prevent the declining industry growth. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to first collects the data associated with the consumer need, the possible markets, the government regulations and the data related to the rivals provided in the market. After that, the business needs to decide one potential segment for its preliminary offering. It needs to collect research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company ought to go for the initial offering. The company must go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a danger to the company's long term presence, but the scenario can be managed by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
