Southwest Airlines In A Different World Case Study Solution and Analysis
Introduction
Southwest Airlines In A Different World Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and Southwest Airlines In A Different World Case Study Help in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Southwest Airlines In A Different World Case Study Analysis has specific strengths that can be used to minimize the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Southwest Airlines In A Different World Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position enables the company to consider a number of development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase restraints for the company in executing its development program. The weak points of Southwest Airlines In A Different World Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Southwest Airlines In A Different World Case Study Help as well, but the development could be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has positioned particular hazards to Southwest Airlines In A Different World Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Southwest Airlines In A Different World Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry together with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. However, the total financial efficiency of the company might be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Southwest Airlines In A Different World Case Study Solution is growing and the company is quite effective in drawing in a a great deal of customers at a possible price.
Together with it, the second graph which shows the annual growth in the Southwest Airlines In A Different World Case Study Solution total possessions, reveals that the business is quite efficient in adding worth to its assets through its earnings. The development in properties shows that the overall worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the circulation of total incomes of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting Southwest Airlines In A Different World Case Study Analysis service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Southwest Airlines In A Different World Case Study Analysis in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the general organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
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 altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Southwest Airlines In A Different World 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 needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal 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 Design).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents provided in the digital libraries on particular websites. The changing consumer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal 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 likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Southwest Airlines In A Different World Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier 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 buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence 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. Significant rivals of Southwest Airlines In A Different World Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in various market segments, with a major concentrate on academic publications. CIP acts 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 might wean the market share of Southwest Airlines In A Different World Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the prominent gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an instant option to prevent the decreasing market growth. Introduction of digital publishing could show to be an immediate service with low quantity of threat for the company. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to initially collects the information related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a risk to the company's long term presence, but the situation can be managed by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
