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Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Help

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Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution and Analysis


Introduction

Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing info and interaction services. Major company sectors of the company include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution has actually become a specialized details supplier and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Vital Issues

Although, Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These factors include;

• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
Executive Summary
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 scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company 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 Case Study Analysis has particular strengths that can be utilized to minimize the threats, conquer the weak point 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 Case Study Help in the publishing industry 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 successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong monetary position allows the company to think about numerous development chances with no fear of raising fund externally.

Weaknesses

Along with the strengths, the business has certain weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis are offered as follows;

• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. 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

The growth of the publishing market is decreasing considering that 2008, impacting Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis as well, however the development might be revived by availing specific chances provided in the market. The market opportunities for CMP include;

• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.

Dangers

The changing macro patterns in the market and increasing competition in the publishing market has posed particular dangers to Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Help 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 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the risk of losing the consumer base.

Monetary Analysis.
Swot Analysis
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. The general financial performance of the company might be analyzed by using the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution is growing and the business is rather efficient in bring in a a great deal of customers at a prospective rate.

Along with it, the 2nd graph which shows the annual growth in the Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution overall assets, shows that the business is rather effective in adding value to its assets through its profits. The development in properties reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).

Another financial analysis of the company using the given data could be the analysis concerning the distribution of total incomes of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible growth to attain its future development goal.

PESTEL Analysis

PESTEL analysis could be conducted to learn the different external forces impacting the performance of the company and the recent 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 might have a significant influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces impacting Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the highest population worldwide with a high population development, revealing the increasing number of customers of the Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.

Technological.

Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.

Market Analysis (Porter's Five Forces Model).

Porter's Five Forces Design could be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.

Danger of New Entrants.

Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.

Threat of Substitution.

Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files provided in the digital libraries on particular sites. The changing consumer choices towards digital knowing increase the threat of substitution for the market.

Competitive Competition.

Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The major suppliers of the Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.

Competitors Analysis.

CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Help include;.

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

Chemical Market Press (CIP).

CIPis one of the close rivals of CMP. Founded in the same period, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in numerous market sections, with a major focus on academic 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 Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Help easily in the present market scenario.

Posts and telecommunication Press (PTP).

It was also founded in the exact same duration as Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.

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

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.

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 need of its products in the market.

Suggestions

With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the declining market development. For that reason, intro of digital publishing might show to be an immediate service with low quantity of threat for the business. The company might also consider the expansion program after the success of its digital publishing program.

Execution

In order to present digital publishing in its item portfolio, the company should initially collects the information related to the customer demand, the potential markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.

Conclusion

The development of the publishing market is declining considering that 2008, showing a risk to the business's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.

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