Southwest Airlines Strategy On Trial Case Study Solution and Analysis
Introduction
Southwest Airlines Strategy On Trial Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details company and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Southwest Airlines Strategy On Trial Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of questions 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 capabilities of the business could be used to strive for 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 Strategy On Trial Case Study Help has particular strengths that can be made use of to decrease the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Southwest Airlines Strategy On Trial Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the business to consider numerous development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Southwest Airlines Strategy On Trial Case Study Solution are provided as follows;
• Despite of being a science and technology 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 should propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Southwest Airlines Strategy On Trial Case Study Solution too, however the development could be restored 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 consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain risks to Southwest Airlines Strategy On Trial Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Southwest Airlines Strategy On Trial Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market in addition to presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total earnings of Southwest Airlines Strategy On Trial Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in attracting a large number of clients at a prospective rate.
Along with it, the second chart which reveals the annual growth in the Southwest Airlines Strategy On Trial Case Study Solution total possessions, reveals that the company is quite efficient in adding value to its properties through its revenues. The development in properties shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the circulation of total profits of the company. Huge part of the incomes of CMP comes 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 prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces impacting Southwest Airlines Strategy On Trial Case Study Help business 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 Strategy On Trial Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the economic policies associated with the import of books affect the general organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out informative materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Southwest Airlines Strategy On Trial Case Study Analysis. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Southwest Airlines Strategy On Trial Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed 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 involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents presented in the virtual libraries on particular sites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Southwest Airlines Strategy On Trial Case Study Help consist of the suppliers of the paper for publishing documents. 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 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 requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Southwest Airlines Strategy On Trial Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition 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 demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant service to avoid the decreasing market growth. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the customer need, the prospective markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business 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 because 2008, revealing a hazard to the business's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
