Southwest Airlines 5 Case Study Solution and Analysis
Introduction
Southwest Airlines 5 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Southwest Airlines 5 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change 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 business could be utilized 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 5 Case Study Analysis has particular strengths that can be used to minimize the dangers, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Southwest Airlines 5 Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong financial position permits the company to consider a number of advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase constraints for the business in implementing its advancement program. The weak points of Southwest Airlines 5 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting Southwest Airlines 5 Case Study Help as well, but the development might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business could also present 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 decrease its reliance over Chinese markets by using its large funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has posed particular threats to Southwest Airlines 5 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Southwest Airlines 5 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP could not be calculated. The general monetary efficiency of the company might be evaluated by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Southwest Airlines 5 Case Study Analysis is growing and the business is rather effective in attracting a large number of clients at a prospective cost.
In addition to it, the second chart which shows the yearly development in the Southwest Airlines 5 Case Study Help total possessions, reveals that the business is quite effective in adding value to its properties through its earnings. The growth in properties shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the offered information might be the analysis regarding the circulation of overall revenues of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting Southwest Airlines 5 Case Study Analysis business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Southwest Airlines 5 Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the total service at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out helpful materials and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Southwest Airlines 5 Case Study Solution. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Southwest Airlines 5 Case Study Solution includes the concerns 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Southwest Airlines 5 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Southwest Airlines 5 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 might wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant service to avoid the declining industry growth. For that reason, introduction of digital publishing could prove to be an instant service with low amount of danger for the company. However, the company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially gathers the information related to the customer need, the prospective markets, the government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, showing a danger to the company's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
