Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution and Analysis
Introduction
Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering details, processing details and communication services. Significant service segments of the business consist of; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution has actually ended up being a specialized details supplier and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation 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 business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution has certain strengths that can be used to decrease the dangers, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the business to consider several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase restrictions for the business in implementing its development program. The weak points of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution as well, but the growth might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has presented particular hazards to Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry in addition to presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall incomes of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite effective in drawing in a big number of customers at a prospective rate.
Together with it, the second chart which reveals the yearly growth in the Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Help total assets, shows that the company is rather effective in including value to its possessions through its revenues. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the distribution of total incomes of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the total organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful materials and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Help includes the concerns of environmental 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 used while publishing ought to not be hazardous 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 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
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. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Kulicke And Soffa Industries Inc Designing A Supply Chain Network 3 Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together 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 decreasing market growth. Introduction of digital publishing could prove to be an instant service with low amount of risk for the business. However, the business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should first collects the information related to the consumer need, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the company should choose one prospective section for its initial offering. It needs to collect research study that how it could separate its digital publishing from the existing rivals' products. The steps above the company must go for the preliminary offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term existence, however the scenario can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
