Apple Inc Managing The Global Supply Chain Case Study Solution and Analysis
Apple Inc Managing The Global Supply Chain Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Apple Inc Managing The Global Supply Chain Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Apple Inc Managing The Global Supply Chain Case Study Solution has particular strengths that can be utilized to minimize the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Apple Inc Managing The Global Supply Chain Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the business to consider several development chances with no fear of raising fund externally.
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in implementing its advancement program. The weak points of Apple Inc Managing The Global Supply Chain Case Study Analysis are provided 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 extremely relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
The growth of the publishing market is declining considering that 2008, affecting Apple Inc Managing The Global Supply Chain Case Study Help as well, but the development might be restored by availing specific chances provided in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured particular threats to Apple Inc Managing The Global Supply Chain Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Apple Inc Managing The Global Supply Chain Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the threat of losing the client base.
Due to absence of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual total earnings of Apple Inc Managing The Global Supply Chain Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a big number of clients at a possible cost.
Together with it, the 2nd graph which reveals the annual development in the Apple Inc Managing The Global Supply Chain Case Study Help overall possessions, shows that the business is quite efficient in including worth to its possessions through its revenues. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the provided information could be the analysis regarding the distribution of total revenues of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a potential growth to attain its future advancement objective.
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces affecting Apple Inc Managing The Global Supply Chain Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Apple Inc Managing The Global Supply Chain Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the overall organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out informative products etc. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Apple Inc Managing The Global Supply Chain Case Study Solution. However, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Apple Inc Managing The Global Supply Chain Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive competition in the publishing industry is high. The presence of a great deal 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 providers of the Apple Inc Managing The Global Supply Chain Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Apple Inc Managing The Global Supply Chain Case Study Analysis include;.
• Chemical Market 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 could wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Apple Inc Managing The Global Supply Chain Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential 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 utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
• Competitors 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 business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate service to avoid the declining market growth. Therefore, intro of digital publishing could prove to be an instant solution with low quantity of risk for the company. However, the company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially gathers the data related to the customer demand, the possible markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
The development of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, however the situation can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.