Southwest Airlines 4 Case Study Solution and Analysis
Introduction
Southwest Airlines 4 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Southwest Airlines 4 Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Southwest Airlines 4 Case Study Solution has particular strengths that can be made use of to reduce the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Southwest Airlines 4 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position permits the business to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase constraints for the company in executing its advancement program. The weak points of Southwest Airlines 4 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Southwest Airlines 4 Case Study Solution as well, however the development might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion 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 competition in the publishing market has presented certain threats to Southwest Airlines 4 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Southwest Airlines 4 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market along with existence of high competitors increases the danger 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 yearly overall incomes of Southwest Airlines 4 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is rather effective in bring in a big number of customers at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the Southwest Airlines 4 Case Study Analysis total possessions, reveals that the company is rather efficient in adding worth to its possessions through its revenues. The growth in possessions shows that the overall value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the circulation of overall profits of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces impacting Southwest Airlines 4 Case Study Help organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Southwest Airlines 4 Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies associated with the import of books impact the general organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Southwest Airlines 4 Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Southwest Airlines 4 Case Study Help includes the concerns of ecological 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 ought to 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 approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the digital libraries on certain sites. The changing customer choices towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Southwest Airlines 4 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Southwest Airlines 4 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 releases similar type of books. For a big period, CIP held the largest market share, and still ranks third and second in different market sections, with a major concentrate on instructional publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Southwest Airlines 4 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• 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 demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an instant solution to prevent the declining market growth. The business could also 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 company ought to initially collects the information connected to the consumer need, the potential markets, the federal government policies and the information related to the rivals provided in the market. After that, the company should decide one possible sector for its preliminary offering. It ought to gather research that how it might separate its digital publishing from the existing rivals' items. The steps above the business should go for the preliminary offering. The business should go for the other markets if the initial offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a danger to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
