Singapore Airlines In Talks To Invest In Jeju Air Case Study Solution and Analysis
Introduction
Singapore Airlines In Talks To Invest In Jeju Air Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and Singapore Airlines In Talks To Invest In Jeju Air Case Study Solution in particular. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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
Singapore Airlines In Talks To Invest In Jeju Air Case Study Help has particular strengths that can be utilized to lower the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Singapore Airlines In Talks To Invest In Jeju Air Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position permits the business to consider numerous advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase restrictions for the company in executing its development program. The weaknesses of Singapore Airlines In Talks To Invest In Jeju Air Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Singapore Airlines In Talks To Invest In Jeju Air Case Study Help as well, however the development could be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed certain dangers to Singapore Airlines In Talks To Invest In Jeju Air Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Singapore Airlines In Talks To Invest In Jeju Air Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. The general monetary performance of the company might be evaluated by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Singapore Airlines In Talks To Invest In Jeju Air Case Study Help is growing and the company is rather effective in bring in a large number of consumers at a potential rate.
In addition to it, the second graph which shows the yearly development in the Singapore Airlines In Talks To Invest In Jeju Air Case Study Solution overall possessions, shows that the business is quite effective in adding value to its possessions through its earnings. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis regarding the circulation of total incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting Singapore Airlines In Talks To Invest In Jeju Air Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Singapore Airlines In Talks To Invest In Jeju Air Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Singapore Airlines In Talks To Invest In Jeju Air Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files presented in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Singapore Airlines In Talks To Invest In Jeju Air Case Study Help consist of the suppliers of the paper for releasing files. 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 Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Singapore Airlines In Talks To Invest In Jeju Air Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a major concentrate on academic publications. CIP functions as a hazard 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 Singapore Airlines In Talks To Invest In Jeju Air Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate service to prevent the declining industry growth. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the information related to the customer need, the prospective markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the company ought to choose one prospective segment for its preliminary offering. It should gather research study that how it might distinguish its digital publishing from the existing competitors' items. After all the actions above the company must go for the initial offering. If the preliminary offering proves a success, the business should opt for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a risk to the business's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
