The Southwest Airlines One Report Case Study Solution and Analysis
The Southwest Airlines One Report Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and The Southwest Airlines One Report Case Study Help in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
The Southwest Airlines One Report Case Study Solution has particular strengths that can be made use of to lower 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 Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position enables the business to consider a number of development opportunities with no fear of raising fund externally.
Along with the strengths, the business has certain weak points which could increase constraints for the company in implementing its advancement program. The weak points of The Southwest Airlines One Report Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing market is decreasing because 2008, impacting The Southwest Airlines One Report Case Study Analysis as well, but the growth might be restored by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned particular threats to The Southwest Airlines One Report Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of The Southwest Airlines One Report 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 acquire a strong consumer base by using certain techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall earnings of The Southwest Airlines One Report Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather effective in drawing in a large number of clients at a possible rate.
Together with it, the 2nd graph which reveals the annual growth in the The Southwest Airlines One Report Case Study Analysis overall possessions, reveals that the business is quite efficient in adding value to its properties through its incomes. The development in properties reveals that the overall worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the circulation of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a potential growth to attain its future advancement goal.
PESTEL analysis might be carried out to discover the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative products etc. China has the highest population in the world with a high population development, revealing the increasing number of customers of the The Southwest Airlines One Report Case Study Solution. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting The Southwest Airlines One Report Case Study Solution consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the documents provided in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Southwest Airlines One Report Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Southwest Airlines One Report Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in different market segments, with a major concentrate on educational publications. CIP serves as a hazard 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 market share of The Southwest Airlines One Report Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business require an instant service to avoid the decreasing market growth. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data related to the customer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, showing a danger to the business's long term presence, however the situation can be controlled by thinking about a development plan in the future. The company might consider 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 brand-new markets.