Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Solution and Analysis
Intro
Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting details, processing info and communication services. Significant organisation segments of the business include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports and so on. Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis has become a specialized information provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing market in general and Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several concerns 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 capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Help has specific strengths that can be used to decrease the risks, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the business to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Solution too, but the growth might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has positioned particular risks to Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market together with existence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be computed. However, the general financial performance of the company could be analyzed by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Help is growing and the business is rather efficient in drawing in a a great deal of clients at a prospective cost.
Together with it, the 2nd graph which reveals the yearly growth in the Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis total properties, shows that the business is quite efficient in including value to its assets through its incomes. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of total profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Help business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to 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 initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Elizabeth Arden Executing Supply Chain Re Engineering 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the decreasing market growth. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of threat for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should initially collects the data related to the customer demand, the possible markets, the government policies and the data related to the competitors provided in the market. After that, the company ought to choose one prospective sector for its initial offering. It should collect research that how it might differentiate its digital publishing from the existing rivals' items. After all the steps above the company ought to go for the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a threat to the company's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
