Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Solution and Analysis
Intro
Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 important experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Help has particular strengths that can be used to minimize the risks, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong monetary position permits the business to think about a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Solution as well, however the development might be revived by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has postured particular dangers to Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be determined. However, the overall monetary efficiency of the company might be examined by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Help is growing and the company is rather effective in bring in a large number of clients at a potential price.
In addition to it, the 2nd chart which reveals the yearly development in the Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Help total possessions, reveals that the company is rather efficient in including value to its possessions through its profits. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the circulation of overall incomes of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out 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 mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP 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 integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Solution. However, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Help includes 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 should 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 authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the digital libraries on particular sites. The changing consumer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal 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 Now You See It Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant solution to avoid the declining market growth. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must initially gathers the data associated with the customer demand, the possible markets, the federal government guidelines and the information associated with the rivals presented in the market. After that, the company must decide one prospective sector for its preliminary offering. It must gather research study that how it might separate its digital publishing from the existing rivals' products. After all the steps above the business need to opt for the initial offering. The business must go for the other markets if the preliminary offering proves a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a risk to the business's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
