The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Solution and Analysis
Introduction
The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change 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 valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Help has certain strengths that can be utilized to lower the risks, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the company to think about several development chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the company in executing its development program. The weak points of The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, impacting The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Help as well, but the growth might be restored by availing particular chances provided in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular threats to The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall revenues of The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is rather effective in drawing in a large number of clients at a prospective price.
Along with it, the second graph which shows the annual development in the The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Solution overall assets, reveals that the company is rather efficient in adding value to its properties through its revenues. The growth in assets reveals that the total worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis relating to the circulation of overall profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Solution in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books impact the general company at CPM. Nevertheless, China's financial 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 development, the consumer's preferences towards reading useful products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Analysis. However, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Analysis consists of 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 needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the documents presented in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market sectors, with a major focus on educational publications. 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 marketplace share of The Global Financial Crisis And The Lcc Paradox The Air Arabia Advantage Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth 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 company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the company require an instant option to avoid the decreasing market growth. Therefore, introduction of digital publishing could show to be an immediate service with low amount of threat for the company. Nevertheless, the business could 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 company ought to first collects the information connected to the customer demand, the possible markets, the federal government guidelines and the information associated with the rivals provided in the market. After that, the company ought to decide one prospective segment for its initial offering. It must gather research that how it might separate its digital publishing from the existing competitors' products. The steps above the business should go for the preliminary offering. If the initial offering shows a success, the business ought to choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, showing a threat to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The business 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 entryway in the new markets.
