Apple Inc Managing A Global Supply Chain 2 Case Study Solution and Analysis
Apple Inc Managing A Global Supply Chain 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info service provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and Apple Inc Managing A Global Supply Chain 2 Case Study Help in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Apple Inc Managing A Global Supply Chain 2 Case Study Solution has specific strengths that can be used to minimize the dangers, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Apple Inc Managing A Global Supply Chain 2 Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position permits the business to think about several advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restraints for the company in implementing its advancement program. The weak points of Apple Inc Managing A Global Supply Chain 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company 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 must propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing industry is declining since 2008, affecting Apple Inc Managing A Global Supply Chain 2 Case Study Solution also, however the growth might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has postured specific threats to Apple Inc Managing A Global Supply Chain 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Apple Inc Managing A Global Supply Chain 2 Case Study Analysis due to the consumer shift towards virtual 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 rivals can acquire a strong customer base by using particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the threat of losing the consumer base.
The company has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP might not be computed. The overall monetary performance of the company could be evaluated by utilizing the charts offered in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Apple Inc Managing A Global Supply Chain 2 Case Study Solution is growing and the business is rather efficient in bring in a large number of clients at a prospective rate.
Together with it, the 2nd chart which shows the yearly development in the Apple Inc Managing A Global Supply Chain 2 Case Study Help total properties, reveals that the business is quite effective in adding worth to its possessions through its revenues. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis relating to the circulation of total incomes of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a possible growth to accomplish its future development objective.
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Apple Inc Managing A Global Supply Chain 2 Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Apple Inc Managing A Global Supply Chain 2 Case Study Analysis in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the economic policies related to the import of books impact the total company at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting Apple Inc Managing A Global Supply Chain 2 Case Study Solution includes 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 must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the digital libraries on particular sites. The changing customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive competition 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 competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Apple Inc Managing A Global Supply Chain 2 Case Study Analysis consist of 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 supplier for CMP is low.
Bargaining Power of Purchaser.
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 buyers requires high quality documents at competitive rates.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Apple Inc Managing A Global Supply Chain 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to prevent the declining industry development. Intro of digital publishing could prove to be an instant solution with low quantity of threat for the business. Nevertheless, the business could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the customer need, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining since 2008, showing a risk to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.