Southwest Airlines 5 Case Study Solution and Analysis
Intro
Southwest Airlines 5 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Southwest Airlines 5 Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction 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 circumstance? Do the long important experience, technical resources and the capabilities of the business 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 5 Case Study Solution has particular strengths that can be used to lower the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Southwest Airlines 5 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position enables the business to consider a number of development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase constraints for the business in executing its advancement program. The weak points of Southwest Airlines 5 Case Study Analysis are provided as follows;
• Despite of being a science and innovation 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 must propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, impacting Southwest Airlines 5 Case Study Help too, but the growth might be restored by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce 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 reduce its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has presented specific risks to Southwest Airlines 5 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Southwest Airlines 5 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be determined. The total financial performance of the company might be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Southwest Airlines 5 Case Study Analysis is growing and the business is quite efficient in attracting a a great deal of consumers at a possible cost.
In addition to it, the 2nd graph which shows the yearly development in the Southwest Airlines 5 Case Study Help total possessions, reveals that the business is quite effective in adding worth to its properties through its incomes. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data could be the analysis concerning the circulation of overall earnings of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different 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 given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Southwest Airlines 5 Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing could decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Southwest Airlines 5 Case Study Solution includes the issues of ecological 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 used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing industry 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 Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Southwest Airlines 5 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Southwest Airlines 5 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable type of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in various market segments, with a significant concentrate on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Southwest Airlines 5 Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Southwest Airlines 5 Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate service to prevent the declining industry growth. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first collects the data related to the customer need, the potential markets, the government guidelines and the information related to the competitors provided 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
Although, the growth of the publishing industry is declining since 2008, revealing a risk to the business's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
