Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution and Analysis
Introduction
Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting info, processing details and communication services. Major business sections of the business include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Help has actually ended up being a specialized details service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation 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 valuable experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution has specific strengths that can be made use of to reduce the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong financial position enables the company to consider a number of advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard 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 growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Analysis as well, however the growth might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has posed particular hazards to Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total earnings of Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in attracting a big number of clients at a potential cost.
In addition to it, the 2nd graph which shows the yearly development in the Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Help total assets, shows that the business is quite effective in adding value to its assets through its profits. The development in possessions shows that the total worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis regarding the distribution of total profits of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces impacting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the general service at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading useful materials etc. China has the greatest population in the world with a high population growth, showing the increasing number of customers of the Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution consists of the issues 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 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 first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the documents presented in the virtual libraries on certain sites. The changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in various market segments, with a major focus on instructional 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 might wean the marketplace share of Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Westjet Airlines Information Technology Governance And Corporate Strategy Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
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 brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the declining market growth. Intro of digital publishing could prove to be an instant service with low quantity of danger for the company. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the consumer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering shows a success, the business 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 market is decreasing considering that 2008, showing a danger to the business's long term existence, however the situation can be managed by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
