Southwest Airline Case Study Solution and Analysis
Southwest Airline Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing info and communication services. Major company sectors of the business include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports and so on. Southwest Airline Case Study Solution has actually become a specialized details service provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Southwest Airline Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change 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 scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Southwest Airline Case Study Solution has particular strengths that can be utilized to minimize the threats, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Southwest Airline Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong monetary position enables the business to think about a number of advancement opportunities without any worry of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restrictions for the business in executing its development program. The weak points of Southwest Airline Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to avoid its reliance over the Chinese markets to attain long term growth.
The growth of the publishing industry is declining because 2008, impacting Southwest Airline Case Study Analysis as well, but the development could be restored by availing specific chances presented in the market. The market chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has presented particular hazards to Southwest Airline Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Southwest Airline Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competitors increases the danger of losing the client base.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be computed. The general monetary efficiency of the company might be evaluated by utilizing the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Southwest Airline Case Study Analysis is growing and the company is rather effective in attracting a a great deal of consumers at a possible rate.
Together with it, the second graph which shows the annual growth in the Southwest Airline Case Study Analysis overall assets, reveals that the business is rather efficient in including worth to its assets through its profits. The development in possessions reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis relating to the distribution of total profits of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a prospective growth to accomplish its future development objective.
PESTEL analysis might be performed to discover the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting Southwest Airline Case Study Solution company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Southwest Airline Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Southwest Airline Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the files presented in the virtual libraries on specific websites. The altering customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence 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, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Southwest Airline Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 buyers needs high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Southwest Airline Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the declining industry growth. Introduction of digital publishing could prove to be an immediate option with low amount of risk for the business. The business could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first gathers the information related to the customer demand, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
The growth of the publishing market is decreasing considering that 2008, showing a threat to the business's long term presence, however the scenario can be controlled by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.