Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution and Analysis
Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Help in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution has certain strengths that can be utilized to reduce the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong monetary position permits the business to think about numerous development chances with no fear of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its advancement program. The weak points of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing industry is decreasing considering that 2008, affecting Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution as well, however the development could be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has presented specific hazards to Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis due to the customer shift towards digital libraries.
• The existence 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 consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the threat of losing the consumer base.
The company has a rather competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. The general monetary performance of the business could be examined by utilizing the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis is growing and the business is quite effective in bring in a a great deal of customers at a possible price.
In addition to it, the second graph which reveals the yearly development in the Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis overall possessions, reveals that the business is rather efficient in adding worth to its properties through its profits. The growth in properties shows that the total worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the given 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 published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a potential growth to attain its future development goal.
PESTEL analysis might be conducted to learn the different external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market 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 market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of replacement for the industry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market 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 competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 files at competitive costs.
CMP operates in a highly competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company require an instant option to prevent the declining industry development. For that reason, intro of digital publishing could show to be an immediate service with low quantity of danger for the business. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the information related to the consumer demand, the prospective markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, revealing a danger to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.