Unity Airways Chris Watson B 2 Case Study Solution and Analysis
Intro
Unity Airways Chris Watson B 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Unity Airways Chris Watson B 2 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised a number of 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 company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Unity Airways Chris Watson B 2 Case Study Analysis has specific strengths that can be made use of to lower the risks, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Unity Airways Chris Watson B 2 Case Study Help 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 effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position permits the company to consider numerous development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase constraints for the business in implementing its advancement program. The weak points of Unity Airways Chris Watson B 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing since 2008, impacting Unity Airways Chris Watson B 2 Case Study Solution as well, but the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has posed certain threats to Unity Airways Chris Watson B 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Unity Airways Chris Watson B 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be computed. The general financial performance of the business could be analyzed by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Unity Airways Chris Watson B 2 Case Study Solution is growing and the company is rather effective in drawing in a a great deal of consumers at a possible price.
Together with it, the second chart which reveals the yearly development in the Unity Airways Chris Watson B 2 Case Study Help total properties, reveals that the business is rather efficient in adding worth to its possessions through its profits. The growth in possessions shows that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the distribution of overall earnings of the business. Huge 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 could move towards other business segments with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Unity Airways Chris Watson B 2 Case Study Analysis company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Unity Airways Chris Watson B 2 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents presented in the virtual libraries on certain websites. The altering consumer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Unity Airways Chris Watson B 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Unity Airways Chris Watson B 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in different market sections, with a major focus on academic publications. CIP acts 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 Unity Airways Chris Watson B 2 Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Unity Airways Chris Watson B 2 Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger 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 segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the decreasing industry development. The company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first gathers the data related to the consumer need, the possible markets, the government policies and the data related to the rivals presented in the market. After that, the company should decide one possible sector for its initial offering. It should gather research that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the company ought to go for the initial offering. If the initial offering proves a success, the company must go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a threat to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
