Operations Management Assignment Inventory Management Case Study Solution and Analysis
Operations Management Assignment Inventory Management Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing details and communication services. Major service sectors of the business include; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports etc. Operations Management Assignment Inventory Management Case Study Solution has actually ended up being a specialized info service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing market in general and Operations Management Assignment Inventory Management Case Study Help in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? 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 company sustain its long term competitive position in future?
Operations Management Assignment Inventory Management Case Study Analysis has certain strengths that can be utilized to reduce the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Operations Management Assignment Inventory Management Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position allows the business to think about a number of development opportunities without any worry of raising fund externally.
Together with the strengths, the company has certain weak points which could increase restraints for the company in implementing its advancement program. The weak points of Operations Management Assignment Inventory Management Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is declining considering that 2008, affecting Operations Management Assignment Inventory Management Case Study Analysis as well, however the development could be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has posed certain dangers to Operations Management Assignment Inventory Management Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Operations Management Assignment Inventory Management Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Due to absence of data, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly overall revenues of Operations Management Assignment Inventory Management Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is quite effective in attracting a big number of consumers at a possible cost.
Together with it, the 2nd chart which reveals the yearly growth in the Operations Management Assignment Inventory Management Case Study Analysis total possessions, reveals that the business is quite effective in including worth to its properties through its earnings. The development in assets reveals that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the distribution of total incomes of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential growth to accomplish its future development objective.
PESTEL analysis could be carried out to discover the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion 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 Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of consumers of the Operations Management Assignment Inventory Management Case Study Analysis. However, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology along with the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken soon.
Environmental forces affecting Operations Management Assignment Inventory Management Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies 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 Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the danger of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Operations Management Assignment Inventory Management Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Operations Management Assignment Inventory Management Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks second and third in numerous market sectors, with a significant concentrate on educational publications. CIP functions as a threat 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).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• 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 company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining market development. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially collects the data connected to the customer need, the possible markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the company must choose one potential segment for its initial offering. It needs to collect research that how it might separate its digital publishing from the existing competitors' products. After all the actions above the company ought to opt for the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this method the company would have the ability to execute its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, revealing a hazard to the business's long term presence, however the scenario can be managed by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.