Operations Management Assignment Inventory Management Case Study Solution and Analysis
Intro
Operations Management Assignment Inventory Management Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing info and interaction services. Significant service segments of the company consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its significant items include books, periodicals, online media, exhibits, research reports etc. Operations Management Assignment Inventory Management Case Study Solution has actually become a specialized info company and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Operations Management Assignment Inventory Management Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the capabilities of the company 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
Operations Management Assignment Inventory Management Case Study Help has certain strengths that can be utilized to minimize the risks, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Operations Management Assignment Inventory Management Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position enables the business to think about several development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase constraints for the company in executing its development program. The weak points of Operations Management Assignment Inventory Management Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, affecting Operations Management Assignment Inventory Management Case Study Help also, however the development could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has presented certain hazards to Operations Management Assignment Inventory Management Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Operations Management Assignment Inventory Management Case Study Solution due to the consumer shift towards virtual 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 competitors can get a strong customer base by using particular techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual total profits of Operations Management Assignment Inventory Management Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite effective in bring in a big number of customers at a potential rate.
Together with it, the 2nd graph which reveals the yearly development in the Operations Management Assignment Inventory Management Case Study Help total properties, shows that the business is rather effective in including value to its assets through its earnings. The growth in assets shows that the total worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis relating to the distribution of total profits of the business. 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 company could move towards other organisation sections with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Operations Management Assignment Inventory Management Case Study Solution business 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 basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Operations Management Assignment Inventory Management Case Study Analysis includes the issues of environmental 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 should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning 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 Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal 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 market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Operations Management Assignment Inventory Management Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Operations Management Assignment Inventory Management Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in various market segments, with a significant focus on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Operations Management Assignment Inventory Management Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Operations Management Assignment Inventory Management Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the declining industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data related to the consumer need, the possible markets, the federal government policies and the data related to the competitors presented in the market. After that, the company ought to decide one potential sector for its initial offering. It ought to collect research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the company ought to go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, revealing a hazard to the business's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
