Southwest Airlines 3 Case Study Solution and Analysis
Introduction
Southwest Airlines 3 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing market in general and Southwest Airlines 3 Case Study Solution in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement 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 scenario? Do the long valuable 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 3 Case Study Help has specific strengths that can be made use of to minimize the threats, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Southwest Airlines 3 Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong monetary position enables the company to think about a number of development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Southwest Airlines 3 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company 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 ought to propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Southwest Airlines 3 Case Study Analysis also, but the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed specific risks to Southwest Airlines 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Southwest Airlines 3 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual overall earnings of Southwest Airlines 3 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a large number of customers at a potential price.
In addition to it, the 2nd chart which reveals the yearly development in the Southwest Airlines 3 Case Study Solution overall possessions, reveals that the business is rather efficient in including worth to its possessions through its earnings. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the distribution of total revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces affecting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Southwest Airlines 3 Case Study Analysis organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Southwest Airlines 3 Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the general business at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading useful products and so on. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Southwest Airlines 3 Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Southwest Airlines 3 Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Southwest Airlines 3 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 Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Southwest Airlines 3 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate service to avoid the declining market growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the information connected to the customer demand, the prospective markets, the government policies and the data connected to the competitors presented in the market. After that, the company needs to decide one prospective segment for its preliminary offering. It ought to collect research that how it might separate its digital publishing from the existing competitors' items. The steps above the company should go for the initial offering. The company must go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a risk to the company's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
