Southwest Airline In Nigeria Case Study Solution and Analysis
Introduction
Southwest Airline In Nigeria Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; gathering info, processing information and communication services. Significant business sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. Southwest Airline In Nigeria Case Study Analysis has actually become a specialized info company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and Southwest Airline In Nigeria Case Study Solution in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Southwest Airline In Nigeria Case Study Help has particular strengths that can be used to reduce the hazards, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Southwest Airline In Nigeria Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong financial position permits the company to consider numerous development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase constraints for the business in implementing its advancement program. The weak points of Southwest Airline In Nigeria Case Study Solution are offered 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 highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Southwest Airline In Nigeria Case Study Solution as well, but the development could be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has posed certain risks to Southwest Airline In Nigeria Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Southwest Airline In Nigeria Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be determined. The overall financial efficiency of the company might be analyzed by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Southwest Airline In Nigeria Case Study Solution is growing and the business is quite effective in bring in a large number of clients at a possible cost.
Along with it, the second chart which shows the yearly development in the Southwest Airline In Nigeria Case Study Solution total assets, shows that the business is rather effective in adding worth to its properties through its profits. The development in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the circulation of total revenues of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces affecting Southwest Airline In Nigeria Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP 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 need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Southwest Airline In Nigeria Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the digital libraries on certain sites. The changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Southwest Airline In Nigeria Case Study Solution consist of the providers of the paper for publishing files. 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 Purchaser.
Haggling 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 marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Southwest Airline In Nigeria Case Study Help 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Southwest Airline In Nigeria Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
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 recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing industry development. Intro of digital publishing might show to be an instant solution with low quantity of threat for the business. However, the company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must initially collects the data associated with the customer demand, the prospective markets, the government regulations and the information connected to the competitors presented in the market. After that, the business must decide one prospective section for its initial offering. It should gather research that how it could distinguish its digital publishing from the existing competitors' products. The steps above the business need to go for the preliminary offering. The business ought to go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, showing a threat to the company's long term existence, however the scenario can be controlled 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 immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
