Southwest Airlines 1993 A Case Study Solution and Analysis
Intro
Southwest Airlines 1993 A Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and Southwest Airlines 1993 A Case Study Solution in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions 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 advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Southwest Airlines 1993 A Case Study Help has certain strengths that can be used to minimize the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Southwest Airlines 1993 A Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong financial position enables the company to consider a number of development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of Southwest Airlines 1993 A Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, affecting Southwest Airlines 1993 A Case Study Solution also, but the growth could be restored by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has positioned particular hazards to Southwest Airlines 1993 A Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Southwest Airlines 1993 A Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total profits of Southwest Airlines 1993 A Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in bring in a large number of consumers at a potential rate.
Together with it, the 2nd chart which reveals the annual growth in the Southwest Airlines 1993 A Case Study Help overall assets, reveals that the business is rather efficient in adding value to its properties through its incomes. The growth in assets reveals that the total value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis regarding the circulation of overall profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn 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 business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Southwest Airlines 1993 A Case Study Help company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Southwest Airlines 1993 A Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Southwest Airlines 1993 A Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-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.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry 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 competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Southwest Airlines 1993 A Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Southwest Airlines 1993 A Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a major concentrate on educational publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Southwest Airlines 1993 A Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding 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: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the declining industry growth. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first collects the information related to the customer demand, the potential markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a danger to the company's long term presence, but the situation can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
