Westjet Airlines Ltd Investment Strategy 2 Case Study Solution and Analysis
Introduction
Westjet Airlines Ltd Investment Strategy 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing info and communication services. Major business sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports and so on. Westjet Airlines Ltd Investment Strategy 2 Case Study Analysis has ended up being a specialized details supplier and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Westjet Airlines Ltd Investment Strategy 2 Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized 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
Westjet Airlines Ltd Investment Strategy 2 Case Study Solution has particular strengths that can be used to minimize the hazards, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Westjet Airlines Ltd Investment Strategy 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position enables the business to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Westjet Airlines Ltd Investment Strategy 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, 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 development. It ought to propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, affecting Westjet Airlines Ltd Investment Strategy 2 Case Study Solution also, but the development could be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular threats to Westjet Airlines Ltd Investment Strategy 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Westjet Airlines Ltd Investment Strategy 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be determined. However, the total monetary efficiency of the business might be examined by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Westjet Airlines Ltd Investment Strategy 2 Case Study Help is growing and the company is rather efficient in bring in a large number of customers at a possible rate.
In addition to it, the 2nd chart which reveals the yearly growth in the Westjet Airlines Ltd Investment Strategy 2 Case Study Help overall properties, shows that the company is rather effective in adding worth to its properties through its profits. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis relating to the circulation of total incomes of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Westjet Airlines Ltd Investment Strategy 2 Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies associated with the import of books affect the general company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out useful materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the Westjet Airlines Ltd Investment Strategy 2 Case Study Help. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Westjet Airlines Ltd Investment Strategy 2 Case Study Solution consists of the concerns of environmental neighborhoods 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 should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Westjet Airlines Ltd Investment Strategy 2 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Westjet Airlines Ltd Investment Strategy 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a major focus on instructional publications. CIP serves 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 could wean the marketplace share of Westjet Airlines Ltd Investment Strategy 2 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Westjet Airlines Ltd Investment Strategy 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value 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 new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the declining industry development. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the consumer demand, the possible markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a hazard to the company's long term presence, but the scenario can be managed by thinking about an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
