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Celestica Company Process Operations Management Case Analysis

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Celestica Company Process Operations Management Case Study Solution and Analysis


Introduction

Celestica Company Process Operations Management Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing details and interaction services. Major organisation sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products include books, periodicals, online media, exhibits, research reports and so on. Celestica Company Process Operations Management Case Study Analysis has actually become a specialized information company and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.

Crucial Issues

CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and Celestica Company Process Operations Management Case Study Analysis in specific. These elements consist of;

• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
Executive Summary
The change of the macro markets have raised several questions 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 business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Celestica Company Process Operations Management Case Study Analysis has particular strengths that can be used to reduce the risks, overcome the weakness and get the chances. Strengths of CMP are provided as follows;

• The long term experience of Celestica Company Process Operations Management Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the business to think about several advancement chances with no worry of raising fund externally.

Weak points

Along with the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weaknesses of Celestica Company Process Operations Management Case Study Solution are given as follows;

• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing market is decreasing because 2008, impacting Celestica Company Process Operations Management Case Study Analysis as well, however the growth might be revived by availing specific chances provided in the market. The market opportunities for CMP consist of;

• The company could also present Digital Publishing by using 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 lower its reliance over Chinese markets by using its huge funds.

Threats

The altering macro patterns in the market and increasing competitors in the publishing market has actually posed particular dangers to Celestica Company Process Operations Management Case Study Help including;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Celestica Company Process Operations Management Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competitors increases the risk of losing the client base.

Monetary Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total incomes of Celestica Company Process Operations Management Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in drawing in a big number of consumers at a potential rate.

In addition to it, the second graph which reveals the yearly growth in the Celestica Company Process Operations Management Case Study Solution total assets, shows that the company is quite efficient in adding worth to its properties through its earnings. The development in assets reveals that the total value of the company is also increasing with increasing the total earnings. (Unknown, 2013).

Another monetary analysis of the business utilizing the offered information might be the analysis relating to the circulation of overall incomes of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a prospective development to attain its future advancement objective.

PESTEL Analysis

PESTEL analysis might be performed to learn the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Celestica Company Process Operations Management Case Study Solution organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.

Affordable.

Economic forces impacting the publishing sector in basic and the Celestica Company Process Operations Management Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the general service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.

Social and Demographical.

Social and demographical forces consist of the population development, the customer's choices towards checking out useful materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of consumers of the Celestica Company Process Operations Management Case Study Solution. However, the consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.

Technological.

Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might minimize the need for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces affecting Celestica Company Process Operations Management Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.

Industry Analysis (Porter's Five Forces Design).

Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market 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 prospective development in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.

Risk of Replacement.

Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the virtual libraries on certain websites. The changing customer choices towards digital knowing increase the risk of alternative for the industry.

Competitive Rivalry.

Competitive competition 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. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.

Bargaining Power of Provider.

The significant providers of the Celestica Company Process Operations Management Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 purchasers needs high quality documents at competitive rates.

Competitors Analysis.

CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Celestica Company Process Operations Management Case Study Solution include;.

• Chemical Market 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 publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in various market segments, with a significant concentrate on educational publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Celestica Company Process Operations Management Case Study Help easily in the existing market situation.

Posts and telecommunication Press (PTP).

Another close rival 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 regards to company scale. It is also among the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• 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 new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.

Cons

• 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 need of its products in the market.

Suggestions

With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an instant solution to avoid the declining market growth. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of threat for the company. The business might likewise consider the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its product portfolio, the company needs to first gathers the information associated with the customer demand, the prospective markets, the government guidelines and the data associated with the rivals provided in the market. After that, the company must decide one potential sector for its preliminary offering. It must gather research that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the company need to opt for the preliminary offering. If the preliminary offering proves a success, the business must opt for the other markets. In this way the company would have the ability to execute its digital publishing program.

Conclusion

Although, the growth of the publishing market is declining considering that 2008, revealing a danger to the business's long term existence, however the scenario can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.

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