United Airlines And Captain Denny Flanagan 2 Case Study Solution and Analysis
Intro
United Airlines And Captain Denny Flanagan 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing info and communication services. Significant service segments of the company consist of; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. United Airlines And Captain Denny Flanagan 2 Case Study Solution has become a specialized information service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, United Airlines And Captain Denny Flanagan 2 Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
United Airlines And Captain Denny Flanagan 2 Case Study Solution has specific strengths that can be used to reduce the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of United Airlines And Captain Denny Flanagan 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position permits the company to consider a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase restrictions for the business in executing its development program. The weaknesses of United Airlines And Captain Denny Flanagan 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting United Airlines And Captain Denny Flanagan 2 Case Study Analysis as well, however the development might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has posed certain dangers to United Airlines And Captain Denny Flanagan 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of United Airlines And Captain Denny Flanagan 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. Nevertheless, the total financial performance of the company might be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of United Airlines And Captain Denny Flanagan 2 Case Study Analysis is growing and the business is quite effective in attracting a a great deal of customers at a potential cost.
Together with it, the second chart which reveals the annual growth in the United Airlines And Captain Denny Flanagan 2 Case Study Analysis overall properties, shows that the business is quite effective in adding worth to its possessions through its profits. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis relating to the circulation of total profits of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the United Airlines And Captain Denny Flanagan 2 Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the total organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out informative materials etc. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the United Airlines And Captain Denny Flanagan 2 Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting United Airlines And Captain Denny Flanagan 2 Case Study Analysis includes the concerns of environmental communities 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 guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the digital libraries on certain sites. The altering customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market 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. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the United Airlines And Captain Denny Flanagan 2 Case Study Solution include the providers of the paper for publishing documents. 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 Buyer.
Bargaining 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 market saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of United Airlines And Captain Denny Flanagan 2 Case Study Help consist of;.
• Chemical Industry 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 might wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an immediate option to avoid the declining market development. For that reason, introduction of digital publishing could show to be an immediate service with low amount of threat for the company. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data related to the consumer need, the possible markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term presence, however the situation can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
