Apple Inc Managing The Global Supply Chain Case Study Solution and Analysis
Apple Inc Managing The Global Supply Chain Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting details, processing info and communication services. Major company sections of the company consist of; books, regulars, consultancy and circulation. The company has a vast item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Apple Inc Managing The Global Supply Chain Case Study Solution has become a specialized details supplier and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and Apple Inc Managing The Global Supply Chain Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Apple Inc Managing The Global Supply Chain Case Study Help has particular strengths that can be used to reduce the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Apple Inc Managing The Global Supply Chain Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong monetary position allows the company to think about a number of development chances with no worry of raising fund externally.
Along with the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Apple Inc Managing The Global Supply Chain Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is decreasing considering that 2008, impacting Apple Inc Managing The Global Supply Chain Case Study Analysis as well, but the growth might be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competitors in the publishing industry has presented certain threats to Apple Inc Managing The Global Supply Chain Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Apple Inc Managing The Global Supply Chain Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the risk of losing the client base.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. Nevertheless, the general financial efficiency of the company could be analyzed by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Apple Inc Managing The Global Supply Chain Case Study Solution is growing and the business is rather efficient in attracting a large number of customers at a prospective price.
Along with it, the second chart which shows the yearly growth in the Apple Inc Managing The Global Supply Chain Case Study Help total properties, shows that the business is quite efficient in adding value to its assets through its earnings. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis relating to the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sections with a possible development to attain its future development objective.
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces impacting Apple Inc Managing The Global Supply Chain Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Apple Inc Managing The Global Supply Chain Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest 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 market saturation, the buyers requires high quality documents at competitive rates.
CMP runs in a highly competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Apple Inc Managing The Global Supply Chain Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP publishes similar kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in different market sectors, with a major concentrate on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Apple Inc Managing The Global Supply Chain Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Apple Inc Managing The Global Supply Chain Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
As the choices are moving towards digital publishing and the company require an immediate solution to prevent the declining market growth. The company might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the data connected to the consumer demand, the possible markets, the government guidelines and the data related to the rivals provided in the market. After that, the company ought to decide one potential section for its preliminary offering. It needs to gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company need to go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing market is declining since 2008, showing a threat to the company's long term presence, however the situation can be managed by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.