Southwest Airlines 2002 An Industry Under Siege Case Study Solution and Analysis
Introduction
Southwest Airlines 2002 An Industry Under Siege Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Southwest Airlines 2002 An Industry Under Siege Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 situation? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Southwest Airlines 2002 An Industry Under Siege Case Study Solution has certain strengths that can be made use of to reduce the dangers, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Southwest Airlines 2002 An Industry Under Siege Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the company to think about several development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase constraints for the company in executing its advancement program. The weak points of Southwest Airlines 2002 An Industry Under Siege Case Study Analysis are given as follows;
• Despite of being a science and technology 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 particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Southwest Airlines 2002 An Industry Under Siege Case Study Analysis as well, but the development might be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned certain risks to Southwest Airlines 2002 An Industry Under Siege Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Southwest Airlines 2002 An Industry Under Siege Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence 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 using specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be computed. However, the overall monetary efficiency of the company might be examined by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Southwest Airlines 2002 An Industry Under Siege Case Study Solution is growing and the business is rather efficient in attracting a a great deal of customers at a possible cost.
Together with it, the second graph which shows the annual development in the Southwest Airlines 2002 An Industry Under Siege Case Study Solution overall properties, shows that the company is rather efficient in adding worth to its possessions through its earnings. The development in assets shows that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis concerning the distribution of total earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces affecting the efficiency of the company and the recent trends 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 could have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and technology together with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Southwest Airlines 2002 An Industry Under Siege Case Study Analysis consists of the issues of ecological 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 used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on certain websites. The changing customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Southwest Airlines 2002 An Industry Under Siege Case Study Solution consist of the providers of the paper for releasing files. 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 large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Southwest Airlines 2002 An Industry Under Siege Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate option to avoid the decreasing market development. The business could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should first collects the information related to the consumer need, the potential markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a threat to the business's long term presence, however the scenario can be managed by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
