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 Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big thorough Science and Technology publishing company through the integration 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 Analysis has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of 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 abilities of the business 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
Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution has certain strengths that can be made use of to decrease the dangers, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis in the publishing industry i.e. 60 years enables 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 provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase restraints for the business in implementing its advancement program. The weak points of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution as well, but the development might be restored by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually posed specific risks to Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry along with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual overall incomes of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is quite efficient in bring in a large number of clients at a possible cost.
Along with it, the second chart which reveals the yearly growth in the Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Help overall properties, shows that the business is rather effective in adding worth to its possessions through its incomes. The development in possessions shows that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis concerning the distribution of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, 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 preferences towards checking out helpful materials etc. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Help. The consumer 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 choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. 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 Case Study Help 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 duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and third in numerous market segments, with a significant focus on instructional publications. CIP serves 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 marketplace share of Kulicke And Soffa Industries Inc Designing A Supply Chain Network Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present 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 organisation segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to prevent the declining market development. Therefore, intro of digital publishing might prove to be an instant service with low amount of threat for the business. However, 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 business needs to first gathers the data related to the consumer need, the possible markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business 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 threat to the company's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.