Xiamen Airlines Pay For Performance Case Study

Solution and Analysis

Introduction

Xiamen Airlines Pay For Performance Case Study Analysis is the largest publishing company
with a greatest market share in the China's book retail market. CMP has actually become a
specialized details company and a large detailed Science and Technology publishing business
through the combination of print media, audio-visual media and the network media.

Crucial Issues

CMP has actually invested its 60 years journey smoothly, being a successful publishing
home, however, the changing macro market trends and forces bring specific difficulties to the
publishing industry in basic and Xiamen Airlines Pay For Performance Case Study Analysis
in particular. These factors consist of;

• Entryway of the new publishing companies in the market.

• Decreasing growth of the publishing market.
• Market saturation.
• Introduction 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 circumstance? Do the long important
experience, technical resources and the capabilities of the business could be made use of to
strive for the future development unceasingly? How could the business sustain its long term
competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths

Xiamen Airlines Pay For Performance Case Study Help has particular strengths that can be
made use of to minimize the hazards, get rid of the weak point and get the chances. Strengths
of CMP are given as follows;

• The long term experience of Xiamen Airlines Pay For Performance Case Study Help in the
publishing industry i.e. 60 years allows the business to offer high quality items at a lower
expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a
competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its
clients.
• Strong financial position allows the business to consider several advancement chances
without any worry of raising fund externally.
Weaknesses

Along with the strengths, the business has particular weak points which might increase
restrictions for the business in executing its advancement program. The weak points of
Xiamen Airlines Pay For Performance Case Study Analysis are given as follows;

• Despite of being a science and technology publishing firm, the business still has traditional
methods of publishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain
expansion plans to avoid its reliance over the Chinese markets to accomplish long term
development.

Opportunities

Although, the development of the publishing market is declining given that 2008, impacting
Xiamen Airlines Pay For Performance Case Study Analysis as well, however the growth
could be revived by availing specific chances presented in the market. The marketplace
opportunities for CMP include;

• The business might also introduce Digital Publishing by using its long term technical
experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets
in order to reduce its dependence over Chinese markets by using its large financial resources.

Risks

The altering macro patterns in the market and increasing competition in the publishing
industry has presented particular risks to Xiamen Airlines Pay For Performance Case Study
Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could lead to declining market share
of Xiamen Airlines Pay For Performance Case Study Solution due to the customer shift
towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for
CMP to lose its competitive position in the market, as competitors can gain a strong customer
base by using specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with presence of high
competition increases the danger of losing the consumer base.

Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It might be examined
from the Appendix III that the yearly overall earnings of Xiamen Airlines Pay For
Performance Case Study Help throughout the period 2000-2012 are growing at a high
development rate, revealing that the yearly need of the items of CMP is growing and the
business is rather effective in drawing in a big number of consumers at a prospective price.

In addition to it, the 2nd graph which shows the yearly development in the Xiamen Airlines
Pay For Performance Case Study Analysis overall assets, reveals that the business is rather
efficient in adding value to its properties through its revenues. The development 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 offered data could be the analysis
regarding the circulation of overall earnings of the business. Major part of the earnings of
CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V.
The business could move towards other business sectors with a potential development to
accomplish its future development objective.

PESTEL Analysis

PESTEL analysis could be performed to find out the numerous external forces affecting the
performance of the business and the recent patterns in the external environment of the
company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.

As the publishing sector could have a substantial effect on the mindset of individuals about
the communist ideology of the federal government, for that reason, the publishing sector is
highly supervised and guided by the Publicity Department of the Communist Party of China.
It could be stated that the general political forces impacting CMP organisation 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 basic and the CMP in particular
includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general
GDP development of the nation. All these forces combine impact the demand for the
publishing market.

Social and Demographical.

Social and demographical forces include the population growth, the customer's preferences
towards checking out helpful products and so on. China has the greatest population
worldwide with a high population development, revealing the increasing number of
customers of the Xiamen Airlines Pay For Performance Case Study Solution. The consumer
preferences are moving towards digital publishing rather than the conventional was of
publishing. In this regard, CMP needs to focus on digital publishing to meet the altering
consumer preferences.

Technological.

Technological forces affecting the CMP include the technological development in the reading
strategies etc. Improvement of science and technology along with the increase of digital
publishing might decrease the need for the CMP items, if specific actions would not be taken
quickly.

Environmental.
Environmental forces affecting Xiamen Airlines Pay For Performance Case Study Solution
consists of the concerns of ecological communities over the usage of paper in publishing
books. The paper utilized in the books while publishing is needed to be non reusable and the
ink utilized while publishing should not be damaging for the environment.

Legal.

Legal regulations 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.

Market Analysis (Porter's 5 Forces Model).

Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry
China. A brief analysis of the Porter's 5 Forces is given as follows;.

Risk of New Entrants.

Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth
in the market tends to draw in brand-new entrants to the publishing market. The presence of
extreme competition and the requirement of big capital tends to demotivate brand-new
entrants to enter in the market.
Hazard of Substitution.

Danger of Substitution is high for the Chinese Publishing Market. The alternative items for
the released files is the files provided in the virtual libraries on certain websites. The
changing customer choices towards digital knowing increase the risk of substitution for the
industry.

Competitive Rivalry.

Competitive competition in the publishing market is high. The presence of large number of
consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high
competitive rivalry for CMP. Together with it, new entrants are also participating in the
marketplace increasing the competitors for CMP.

Bargaining Power of Supplier.

The major suppliers of the Xiamen Airlines Pay For Performance Case Study Analysis
include the suppliers of the paper for publishing documents. As CMP is the largest publisher
in the Chinese Publishing Market, for that reason the overall bargaining power of provider for
CMP is low.

Bargaining Power of Buyer.

Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great
deal of publishers in the Chinese market and the marketplace saturation, the buyers requires
high quality files at competitive rates.

Competitors Analysis.

CMP operates in an extremely competitive industry with the existence of a great deal of
rivals. The business has a competitive position in the market with the greatest market share in
the Chinese publishing market. Significant competitors of Xiamen Airlines Pay For
Performance Case Study Analysis include;.

• Chemical Market Press (CIP).

• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis one of the close rivals of CMP. Established in the exact same duration, CIP publishes
similar kind of books. For a large period, CIP held the largest market share, and still ranks
2nd and third in numerous market sectors, with a major focus on academic publications. CIP
functions as a threat for CMP as it might wean its market share due to its long term
competitive background. CIP is concentrated on digital publishing and could wean the market
share of Xiamen Airlines Pay For Performance Case Study Solution easily in the existing
market scenario.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was also established in the very same period as
CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also
one of the prominent gamers in the publishing market with a yearly total incomes of RMB
550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing reliance over the Chinese markets.

• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.

Cons

• Use of prospective resources in expansion.

• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.

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 demand of its items in the market.

Suggestions

As the preferences are moving towards digital publishing and the company need an
immediate option to avoid the declining industry development. The company might likewise
think about the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its item portfolio, the business needs to first collects
the data related to the consumer need, the possible markets, the government policies and the
data related to the rivals provided in the market. After that, the company needs to decide one
prospective sector for its initial offering. It should gather research that how it might
differentiate its digital publishing from the existing competitors' products. After all the steps
above the business need to opt for the preliminary offering. The company must go for the
other markets if the preliminary offering shows a success. In this way the business would be
able to implement its digital publishing program.

Conclusion

The development of the publishing industry is decreasing given that 2008, revealing a risk to
the company's long term existence, however the situation can be managed by thinking about a
development strategy in the future. The business could consider presenting digital
publishingin its existing market to implement its advancement program at instant basis and to
prevent the danger of failure for entrance in the brand-new markets.