Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Solution and Analysis
Intro
Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Analysis has particular strengths that can be used to lower the hazards, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position permits the company to think about a number of advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, impacting Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Help as well, however the growth might be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has presented specific hazards to Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be computed. However, the total financial performance of the company might be analyzed by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Help is growing and the company is quite effective in attracting a large number of consumers at a potential cost.
Together with it, the second graph which shows the annual growth in the Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Analysis total assets, reveals that the business is quite efficient in including value to its properties through its incomes. The growth in properties shows that the overall worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided information might be the analysis regarding the circulation of total earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total service at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Threat of Replacement 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 preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 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 very same duration, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a significant focus on instructional publications. CIP serves as a threat 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 Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Sri Lankas Aitken Spence Hotel Holdings Competitive Strategy And Sustainable Tourism 2 Case Study Help and CIP. It is also one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the customer demand, the potential markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.
