Relationship Between Supply Chain And Marketing Case Study Solution and Analysis
Intro
Relationship Between Supply Chain And Marketing Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Relationship Between Supply Chain And Marketing Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 important experience, technical resources and the abilities of the business could be used to strive for 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 Case Study Analysis has specific strengths that can be utilized to decrease the risks, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Relationship Between Supply Chain And Marketing Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position permits the business to consider a number of development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase constraints for the company in implementing its advancement program. The weak points of Relationship Between Supply Chain And Marketing Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, 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 development. It ought to propose particular expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Relationship Between Supply Chain And Marketing Case Study Analysis also, however the growth could be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually postured certain risks to Relationship Between Supply Chain And Marketing Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Relationship Between Supply Chain And Marketing Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual overall revenues of Relationship Between Supply Chain And Marketing Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing 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 possible cost.
Together with it, the 2nd chart which shows the yearly development in the Relationship Between Supply Chain And Marketing Case Study Analysis overall assets, shows that the business is rather efficient in including value to its properties through its earnings. The development in possessions reveals that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the circulation of total incomes of the business. Major part of the profits 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 business sectors with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the total political forces affecting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Relationship Between Supply Chain And Marketing Case Study Analysis consists of the issues of environmental communities 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Relationship Between Supply Chain And Marketing Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Relationship Between Supply Chain And Marketing Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Relationship Between Supply Chain And Marketing Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an instant solution to avoid the decreasing industry development. Therefore, introduction of digital publishing could show to be an immediate option with low amount of threat for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must initially gathers the information associated with the customer need, the prospective markets, the government policies and the information related to the rivals presented in the market. After that, the business ought to decide one prospective section for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business must go for the preliminary offering. The business ought to go for the other markets if the initial offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a risk to the company's long term presence, however the situation can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
