The Southwest Airlines One Report 2 Case Study Solution and Analysis
Intro
The Southwest Airlines One Report 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing information and interaction services. Significant service sections of the company consist of; books, regulars, consultancy and circulation. The company has a vast item portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports etc. The Southwest Airlines One Report 2 Case Study Solution has ended up being a specialized information supplier and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, The Southwest Airlines One Report 2 Case Study Analysis has invested its 60 years journey efficiently, 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 specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Southwest Airlines One Report 2 Case Study Analysis has certain strengths that can be made use of to minimize the dangers, overcome the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Southwest Airlines One Report 2 Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the business to think about a number of development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restraints for the business in executing its advancement program. The weak points of The Southwest Airlines One Report 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting The Southwest Airlines One Report 2 Case Study Help also, but the growth could be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The business could also introduce 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 reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed specific dangers to The Southwest Airlines One Report 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of The Southwest Airlines One Report 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business 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 business could be evaluated by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of The Southwest Airlines One Report 2 Case Study Help is growing and the company is rather efficient in attracting a a great deal of customers at a possible cost.
Together with it, the second chart which reveals the annual development in the The Southwest Airlines One Report 2 Case Study Solution total properties, shows that the business is quite efficient in adding worth to its assets through its incomes. The growth in assets shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the circulation of overall incomes of the company. Huge 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 company could move towards other service segments with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various 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 business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the The Southwest Airlines One Report 2 Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the overall company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting The Southwest Airlines One Report 2 Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized 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 guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Southwest Airlines One Report 2 Case Study Solution include 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 costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Southwest Airlines One Report 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might 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 rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective 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 using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 company segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant option to prevent the decreasing industry development. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first collects the data related to the consumer demand, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a hazard to the business's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
