Scientific Glass Inc Inventory Management 2 Case Study Solution and Analysis
Intro
Scientific Glass Inc Inventory Management 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting information, processing details and communication services. Significant organisation segments of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Scientific Glass Inc Inventory Management 2 Case Study Solution has actually ended up being a specialized information provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and Scientific Glass Inc Inventory Management 2 Case Study Analysis in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation 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 scenario? 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
Scientific Glass Inc Inventory Management 2 Case Study Analysis has specific strengths that can be made use of to reduce the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Scientific Glass Inc Inventory Management 2 Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position enables the company to consider a number of advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Scientific Glass Inc Inventory Management 2 Case Study Help are offered as follows;
• Despite of being a science and innovation 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 development. It must propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Scientific Glass Inc Inventory Management 2 Case Study Help also, but the development might be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has positioned particular threats to Scientific Glass Inc Inventory Management 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Scientific Glass Inc Inventory Management 2 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 rivals can gain a strong customer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly total revenues of Scientific Glass Inc Inventory Management 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is rather efficient in drawing in a big number of clients at a potential cost.
In addition to it, the second chart which shows the yearly growth in the Scientific Glass Inc Inventory Management 2 Case Study Solution overall possessions, shows that the company is rather efficient in adding value to its possessions through its profits. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the distribution of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Scientific Glass Inc Inventory Management 2 Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the total organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products etc. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Scientific Glass Inc Inventory Management 2 Case Study Analysis. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Scientific Glass Inc Inventory Management 2 Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the virtual libraries on specific websites. The altering customer choices towards digital knowing increase the hazard of replacement 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 competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Scientific Glass Inc Inventory Management 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Scientific Glass Inc Inventory Management 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Scientific Glass Inc Inventory Management 2 Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden 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 market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the 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 business require an instant service to avoid the declining industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially collects the data associated with the customer demand, the prospective markets, the federal government guidelines and the data connected to the rivals presented in the market. After that, the business needs to choose one prospective section for its initial offering. It must collect research study that how it might distinguish its digital publishing from the existing competitors' items. After all the actions above the business ought to go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a threat to the company's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
