Operation Management 2 Case Study Solution and Analysis
Introduction
Operation Management 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing industry in general and Operation Management 2 Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Operation Management 2 Case Study Solution has specific strengths that can be used to minimize the hazards, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Operation Management 2 Case Study Solution in the publishing market i.e. 60 years allows the business 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.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong monetary position enables the company to consider a number of advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Operation Management 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Operation Management 2 Case Study Analysis as well, but the growth could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular threats to Operation Management 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Operation Management 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry together with existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual overall revenues of Operation Management 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a large number of consumers at a possible price.
Along with it, the second graph which shows the annual development in the Operation Management 2 Case Study Analysis overall assets, shows that the business is quite efficient in adding worth to its possessions through its earnings. The growth in assets shows that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the distribution of overall profits of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections 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 performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Operation Management 2 Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the total organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Operation Management 2 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence 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 entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Operation Management 2 Case Study Solution consist of the providers of the paper for releasing 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 Purchaser.
Haggling 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 market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Operation Management 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in different market sections, with a significant focus on academic publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Operation Management 2 Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant service to avoid the decreasing market development. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first collects 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 company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a hazard to the company's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
