Southwest Airlines 2011 Case Study Solution and Analysis
Southwest Airlines 2011 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information service provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Southwest Airlines 2011 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Southwest Airlines 2011 Case Study Solution has certain strengths that can be utilized to minimize the dangers, overcome the weakness and get the chances. 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 business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position allows the company to consider numerous development chances without any fear of raising fund externally.
Along with the strengths, the business has particular weak points which might increase restrictions for the company in executing its development program. The weaknesses of Southwest Airlines 2011 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining because 2008, impacting Southwest Airlines 2011 Case Study Analysis as well, however the development might be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has presented specific hazards to Southwest Airlines 2011 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Southwest Airlines 2011 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk 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, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the danger of losing the client base.
The business has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be calculated. Nevertheless, the total financial efficiency of the company might be evaluated by using the graphs given up the case Appendices. It could be examined from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of Southwest Airlines 2011 Case Study Solution is growing and the company is quite efficient in drawing in a a great deal of clients at a potential rate.
Along with it, the second chart which reveals the yearly growth in the Southwest Airlines 2011 Case Study Analysis overall properties, reveals that the business is rather effective in including value to its possessions through its revenues. The growth in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis concerning the distribution of total profits of the company. Major part of the revenues 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 development to achieve its future development objective.
PESTEL analysis could be performed to discover 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 provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting Southwest Airlines 2011 Case Study Analysis consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the virtual libraries on particular sites. The altering consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers 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 significant providers of the Southwest Airlines 2011 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 requires high quality files 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. Significant rivals of Southwest Airlines 2011 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 3rd and second in numerous market segments, with a major focus on instructional publications. CIP serves as a risk for CMP as it might 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 circumstance.
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 sixth in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining market growth. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should first collects the information related to the customer demand, the prospective markets, the government guidelines and the data related to the rivals presented in the market. After that, the company needs to decide one potential section for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this way the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing given that 2008, showing a danger to the company's long term existence, but the situation can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.