Southwest Airlines 2011 2 Case Study Solution and Analysis
Intro
Southwest Airlines 2011 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Southwest Airlines 2011 2 Case Study Help has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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 Airlines 2011 2 Case Study Solution has particular strengths that can be utilized to reduce the hazards, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Southwest Airlines 2011 2 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the business to think about a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase constraints for the company in implementing its advancement program. The weak points of Southwest Airlines 2011 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining because 2008, affecting Southwest Airlines 2011 2 Case Study Help as well, however the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has presented particular hazards to Southwest Airlines 2011 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Southwest Airlines 2011 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total revenues of Southwest Airlines 2011 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite efficient in drawing in a big number of customers at a prospective rate.
In addition to it, the second chart which reveals the yearly development in the Southwest Airlines 2011 2 Case Study Solution total possessions, reveals that the company is quite effective in including value to its assets through its profits. The development in properties shows that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the distribution of total profits of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Southwest Airlines 2011 2 Case Study Solution service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of customers of the Southwest Airlines 2011 2 Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Southwest Airlines 2011 2 Case Study Solution includes the concerns of environmental neighborhoods 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Southwest Airlines 2011 2 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Southwest Airlines 2011 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in various market sections, with a significant concentrate on instructional publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Southwest Airlines 2011 2 Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate service to prevent the decreasing industry development. The company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to first collects the data related to the consumer need, the prospective markets, the federal government guidelines and the data related to the competitors provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a threat to the business's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
