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Elizabeth Arden Executing Supply Chain Re Engineering Case Solution

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Elizabeth Arden Executing Supply Chain Re Engineering Case Study Solution and Analysis


Intro

Elizabeth Arden Executing Supply Chain Re Engineering Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.

Vital Problems

Although, Elizabeth Arden Executing Supply Chain Re Engineering Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors include;

• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
Executive Summary
The transformation of the macro markets have raised several questions 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 abilities of the company could be made use of to pursue 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 Case Study Analysis has specific strengths that can be utilized to lower the threats, overcome the weakness and avail the chances. Strengths of CMP are given as follows;

• The long term experience of Elizabeth Arden Executing Supply Chain Re Engineering Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position enables the business to consider a number of advancement opportunities with no fear of raising fund externally.

Weak points

Together with the strengths, the company has certain weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Elizabeth Arden Executing Supply Chain Re Engineering Case Study Help are provided as follows;

• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is declining given that 2008, affecting Elizabeth Arden Executing Supply Chain Re Engineering Case Study Analysis also, however the growth could be revived by availing certain chances provided in the market. The marketplace chances for CMP consist of;

• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.

Risks

The changing macro trends in the market and increasing competitors in the publishing market has actually positioned specific hazards to Elizabeth Arden Executing Supply Chain Re Engineering Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Elizabeth Arden Executing Supply Chain Re Engineering Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the risk of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to absence of data, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual overall profits of Elizabeth Arden Executing Supply Chain Re Engineering Case Study Help throughout the period 2000-2012 are growing at a high growth 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 clients at a potential rate.

In addition to it, the second chart which reveals the yearly growth in the Elizabeth Arden Executing Supply Chain Re Engineering Case Study Help overall properties, shows that the business is quite efficient in adding value to its assets through its earnings. The development in properties shows that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).

Another financial analysis of the company using the offered information could be the analysis regarding the circulation of total revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a prospective development to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis might be conducted to find out the various external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.

Affordable.

Economic forces impacting 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 effect the need for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population development, the consumer's preferences towards reading useful products and so on. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Elizabeth Arden Executing Supply Chain Re Engineering Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.

Technological.

Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces affecting Elizabeth Arden Executing Supply Chain Re Engineering Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.

Market Analysis (Porter's Five Forces Model).

Porter's 5 Forces Model might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.

Danger of New Entrants.

Risks 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. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.

Danger of Substitution.

Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the threat of alternative for the industry.

Competitive Competition.

Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.

Bargaining Power of Supplier.

The major suppliers of the Elizabeth Arden Executing Supply Chain Re Engineering Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.

Competitors Analysis.

CMP operates in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Elizabeth Arden Executing Supply Chain Re Engineering Case Study Analysis include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis among the close rivals of CMP. Founded in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in different market sections, with a significant focus on instructional publications. CIP functions 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 might wean the market share of Elizabeth Arden Executing Supply Chain Re Engineering Case Study Help quickly in the existing market scenario.

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 organisation scale. It is likewise among the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.

Recommendations

As the preferences are shifting towards digital publishing and the business need an instant service to avoid the decreasing market growth. The company might likewise consider the expansion program after the success of its digital publishing program.

Execution

In order to present digital publishing in its product portfolio, the business should first gathers the information related to the consumer need, the prospective markets, the government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

The growth of the publishing industry is decreasing given that 2008, showing a hazard to the company's long term existence, but the situation can be managed by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.

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