The Southwest Airlines One Report Case Study Solution and Analysis
Introduction
The Southwest Airlines One Report Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing information and communication services. Major business segments of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports and so on. The Southwest Airlines One Report Case Study Help has actually ended up being a specialized info supplier and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and The Southwest Airlines One Report Case Study Analysis in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 company 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
The Southwest Airlines One Report Case Study Analysis has particular strengths that can be utilized to minimize the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Southwest Airlines One Report Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong financial position enables the business to consider numerous advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in executing its advancement program. The weaknesses of The Southwest Airlines One Report Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, 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 development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting The Southwest Airlines One Report Case Study Solution as well, however the growth might be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business could likewise 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 reduce its dependence over Chinese markets by using its large funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has positioned particular dangers to The Southwest Airlines One Report Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The Southwest Airlines One Report Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. However, the total financial performance of the business could be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of The Southwest Airlines One Report Case Study Solution is growing and the business is quite efficient in drawing in a large number of clients at a potential price.
Together with it, the second graph which shows the yearly growth in the The Southwest Airlines One Report Case Study Analysis overall possessions, reveals that the business is rather effective in adding value to its possessions through its earnings. The development in possessions reveals that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the distribution of total earnings of the company. Huge part of the incomes 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 company segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the The Southwest Airlines One Report Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful materials and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the The Southwest Airlines One Report Case Study Analysis. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The Southwest Airlines One Report Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model 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.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. However, 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.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Southwest Airlines One Report Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Southwest Airlines One Report Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value 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 new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the decreasing market growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should first gathers the data related to the consumer need, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a danger to the company's long term existence, but the situation can be controlled by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
