Westjet Airlines Ltd Investment Strategy Case Study Solution and Analysis
Introduction
Westjet Airlines Ltd Investment Strategy Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing details and communication services. Significant organisation segments of the business consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its significant items include books, periodicals, online media, exhibits, research study reports etc. Westjet Airlines Ltd Investment Strategy Case Study Solution has become a specialized details service provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Westjet Airlines Ltd Investment Strategy Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous 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 made use of 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 Ltd Investment Strategy Case Study Solution has particular strengths that can be utilized to minimize the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Westjet Airlines Ltd Investment Strategy Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position allows the company to think about numerous development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Westjet Airlines Ltd Investment Strategy Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Westjet Airlines Ltd Investment Strategy Case Study Solution as well, however the growth might be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain dangers to Westjet Airlines Ltd Investment Strategy Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Westjet Airlines Ltd Investment Strategy Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be determined. Nevertheless, the total monetary performance of the company might be evaluated by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Westjet Airlines Ltd Investment Strategy Case Study Solution is growing and the business is rather efficient in drawing in a large number of consumers at a potential price.
Along with it, the second chart which shows the yearly development in the Westjet Airlines Ltd Investment Strategy Case Study Solution total assets, reveals that the business is rather effective in including value to its properties through its earnings. The growth in properties shows that the overall value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis concerning the distribution of total profits of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the company and the current patterns 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 substantial influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Westjet Airlines Ltd Investment Strategy Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the total organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of consumers of the Westjet Airlines Ltd Investment Strategy Case Study Analysis. Nevertheless, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Westjet Airlines Ltd Investment Strategy Case Study Analysis 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 non reusable and the ink utilized while publishing should not be hazardous 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 initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the files presented in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard 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 and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Westjet Airlines Ltd Investment Strategy Case Study Solution include the providers of the paper for publishing 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 purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Westjet Airlines Ltd Investment Strategy Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in numerous market sectors, with a significant concentrate on instructional publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Westjet Airlines Ltd Investment Strategy Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the popular players in the publishing industry with an annual overall profits 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 effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the 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 avoid the decreasing market growth. The business could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to initially gathers the information related to the customer need, the possible markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company must 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 since 2008, revealing a risk to the business's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
