The Westjet Christmas Miracle A 2 Case Study Solution and Analysis
Introduction
The Westjet Christmas Miracle A 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, The Westjet Christmas Miracle A 2 Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market 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 methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities 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
The Westjet Christmas Miracle A 2 Case Study Help has specific strengths that can be made use of to lower the hazards, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Westjet Christmas Miracle A 2 Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the business to think about a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in executing its advancement program. The weak points of The Westjet Christmas Miracle A 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting The Westjet Christmas Miracle A 2 Case Study Solution as well, but the development might be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has presented certain dangers to The Westjet Christmas Miracle A 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Westjet Christmas Miracle A 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry together with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be computed. However, the total monetary performance of the business could be analyzed by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of The Westjet Christmas Miracle A 2 Case Study Solution is growing and the business is quite efficient in attracting a a great deal of consumers at a prospective price.
In addition to it, the 2nd chart which reveals the annual development in the The Westjet Christmas Miracle A 2 Case Study Solution overall properties, reveals that the company is quite efficient in including value to its properties through its revenues. The growth in properties reveals that the overall value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the distribution of overall revenues of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The Westjet Christmas Miracle A 2 Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the files provided in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers 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 likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Westjet Christmas Miracle A 2 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Westjet Christmas Miracle A 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in various market sections, with a major concentrate on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Westjet Christmas Miracle A 2 Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the decreasing industry development. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information related to the customer need, the potential markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the company should choose one prospective segment for its preliminary offering. It needs to collect research study that how it could separate its digital publishing from the existing competitors' items. The steps above the business must go for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
