Southwest Airlines 2011 Case Study Solution and Analysis
Introduction
Southwest Airlines 2011 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Southwest Airlines 2011 Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous 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 capabilities of the business could be made use of to strive for 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 Case Study Solution has certain strengths that can be used to reduce the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Southwest Airlines 2011 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong financial position allows the business to consider several advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase constraints for the company in executing its advancement program. The weak points of Southwest Airlines 2011 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing because 2008, impacting Southwest Airlines 2011 Case Study Solution as well, however the growth might be revived by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually postured particular dangers to Southwest Airlines 2011 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Southwest Airlines 2011 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly overall profits of Southwest Airlines 2011 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a large number of clients at a possible price.
In addition to it, the second graph which shows the yearly development in the Southwest Airlines 2011 Case Study Help total possessions, shows that the business is quite efficient in including value to its properties through its earnings. The development in assets shows that the total value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis relating to the distribution of overall incomes of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces affecting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Southwest Airlines 2011 Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative products and so on. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Southwest Airlines 2011 Case Study Help. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Southwest Airlines 2011 Case Study Solution consists of the issues 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Southwest Airlines 2011 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Southwest Airlines 2011 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in different market sectors, with a major focus on academic publications. CIP serves 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 might wean the market share of Southwest Airlines 2011 Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period 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 total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing 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: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant solution to avoid the declining market growth. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially collects the information related to the customer demand, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a risk to the business's long term existence, however the situation can be managed by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
