Relationship Between Supply Chain And Marketing 2 Case Study Solution and Analysis
Intro
Relationship Between Supply Chain And Marketing 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing details and communication services. Significant service sections of the business include; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products include books, regulars, online media, exhibitions, research reports and so on. Relationship Between Supply Chain And Marketing 2 Case Study Analysis has actually become a specialized information company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Relationship Between Supply Chain And Marketing 2 Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions 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 abilities of the company could be used 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
Relationship Between Supply Chain And Marketing 2 Case Study Help has certain strengths that can be utilized to reduce the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Relationship Between Supply Chain And Marketing 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong monetary position allows the business to consider a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Relationship Between Supply Chain And Marketing 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, affecting Relationship Between Supply Chain And Marketing 2 Case Study Help as well, but the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has presented specific hazards to Relationship Between Supply Chain And Marketing 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Relationship Between Supply Chain And Marketing 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry together with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual overall revenues of Relationship Between Supply Chain And Marketing 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite efficient in attracting a large number of consumers at a possible cost.
Together with it, the 2nd chart which shows the annual development in the Relationship Between Supply Chain And Marketing 2 Case Study Solution overall assets, shows that the business is quite efficient in adding value to its possessions through its incomes. The development in properties shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business using the given data might be the analysis regarding the distribution of total earnings of the business. Huge part of the incomes 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 service segments with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might 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 company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be said that the total political forces impacting Relationship Between Supply Chain And Marketing 2 Case Study Help business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Relationship Between Supply Chain And Marketing 2 Case Study Help in particular 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 need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Relationship Between Supply Chain And Marketing 2 Case Study Solution includes the issues of ecological neighborhoods over the usage 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 policies 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 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on 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 Supplier.
The significant providers of the Relationship Between Supply Chain And Marketing 2 Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Relationship Between Supply Chain And Marketing 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and third in various market sections, with a significant focus on instructional publications. CIP serves as a risk 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 market share of Relationship Between Supply Chain And Marketing 2 Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the decreasing market growth. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should first gathers the data related to the consumer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a threat to the business's long term presence, but the scenario can be controlled by considering a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
