Southwest Airline Case Study Solution and Analysis
Intro
Southwest Airline Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing details and interaction services. Significant company sectors of the company include; books, regulars, consultancy and circulation. The company has a large product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Southwest Airline Case Study Analysis has become a specialized information company and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Southwest Airline Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Southwest Airline Case Study Help has specific strengths that can be used to reduce the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Southwest Airline Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the company to think about several advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in executing its development program. The weak points of Southwest Airline Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, impacting Southwest Airline Case Study Analysis too, however the growth could be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has positioned certain threats to Southwest Airline Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Southwest Airline Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market in addition to existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly overall earnings of Southwest Airline Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is quite efficient in bring in a large number of clients at a possible rate.
In addition to it, the 2nd chart which reveals the annual growth in the Southwest Airline Case Study Solution overall possessions, shows that the business is quite effective in adding worth to its possessions through its revenues. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis regarding the circulation of total earnings of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Southwest Airline Case Study Solution consists of 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 used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the threat of alternative 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 and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Southwest Airline Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Southwest Airline Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major concentrate on instructional publications. 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 marketplace share of Southwest Airline Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company need an immediate option to prevent the decreasing industry growth. Intro of digital publishing might prove to be an instant option with low amount of threat for the company. The company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must first gathers the information associated with the customer demand, the possible markets, the government regulations and the data connected to the competitors provided in the market. After that, the business must decide one prospective segment for its initial offering. It should collect research study that how it could separate its digital publishing from the existing rivals' products. The steps above the business must go for the initial offering. If the initial offering shows a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a risk to the company's long term presence, but the situation can be managed by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
