Lean Manufacturing System Case Study Solution and Analysis
Introduction
Lean Manufacturing System Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering information, processing information and interaction services. Significant organisation sectors of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Lean Manufacturing System Case Study Solution has become a specialized details provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and Lean Manufacturing System Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions 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 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
Lean Manufacturing System Case Study Solution has particular strengths that can be utilized to lower the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Lean Manufacturing System Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position allows the business to consider a number of development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in executing its advancement program. The weak points of Lean Manufacturing System Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Lean Manufacturing System Case Study Help too, but the growth might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually posed particular risks to Lean Manufacturing System Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Lean Manufacturing System Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the general financial efficiency of the business might be examined by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Lean Manufacturing System Case Study Help is growing and the company is rather efficient in attracting a a great deal of consumers at a potential price.
In addition to it, the 2nd graph which shows the yearly development in the Lean Manufacturing System Case Study Analysis total assets, reveals that the business is rather effective in including value to its possessions through its revenues. The growth in properties shows that the total value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the provided data might be the analysis relating to the circulation of total revenues of the business. Major part of the earnings 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 organisation sectors with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting Lean Manufacturing System Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings 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.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Lean Manufacturing System Case Study Solution includes the concerns 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 needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Lean Manufacturing System Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Lean Manufacturing System Case Study Solution 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 could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Lean Manufacturing System Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an instant option to prevent the decreasing market development. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to first collects the information associated with the customer need, the possible markets, the government regulations and the information associated with the rivals provided in the market. After that, the company ought to decide one possible section for its preliminary offering. It needs to collect research that how it could separate its digital publishing from the existing competitors' items. After all the actions above the company need to opt for the preliminary offering. If the preliminary offering proves a success, the company needs to opt for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a risk to the company's long term presence, but the circumstance can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
