South West Airline Company Case Study Solution and Analysis
South West Airline Company Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, South West Airline Company Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
South West Airline Company Case Study Help has certain strengths that can be utilized to reduce the risks, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of South West Airline Company Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position allows the company to consider several advancement chances without any worry of raising fund externally.
Together with the strengths, the company has particular weak points which might increase constraints for the company in executing its development program. The weaknesses of South West Airline Company Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
The development of the publishing market is declining considering that 2008, affecting South West Airline Company Case Study Analysis as well, but the development could be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competitors in the publishing industry has positioned particular hazards to South West Airline Company Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of South West Airline Company Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the danger of losing the customer base.
Due to absence of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total revenues of South West Airline Company Case Study Solution throughout the period 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 consumers at a prospective price.
In addition to it, the 2nd graph which shows the annual development in the South West Airline Company Case Study Solution overall possessions, shows that the business is rather efficient in including worth to its assets through its profits. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis concerning the circulation of overall incomes of the company. Huge 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 company might move towards other company segments with a potential growth to attain its future development goal.
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces impacting South West Airline Company Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
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 overall GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting South West Airline Company Case Study Solution 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 utilized while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the risk of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the South West Airline Company Case Study Help include the providers 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 supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of South West Airline Company Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business require an instant service to prevent the declining market development. The business could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially collects the data connected to the consumer demand, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. After that, the business should decide one prospective sector for its initial offering. It needs to gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business must go for the initial offering. The company needs to go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
The growth of the publishing market is decreasing because 2008, showing a danger to the company's long term presence, but the circumstance can be managed by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.