Scientific Glass Incorporated Inventory Management 2 Case Study Solution and Analysis
Scientific Glass Incorporated Inventory Management 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Scientific Glass Incorporated Inventory Management 2 Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Scientific Glass Incorporated Inventory Management 2 Case Study Solution has specific strengths that can be made use of to minimize the hazards, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Scientific Glass Incorporated Inventory Management 2 Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position enables the business to think about several advancement opportunities without any fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restrictions for the business in implementing its development program. The weak points of Scientific Glass Incorporated Inventory Management 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
The development of the publishing industry is declining since 2008, affecting Scientific Glass Incorporated Inventory Management 2 Case Study Analysis as well, however the growth might be revived by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has posed certain risks to Scientific Glass Incorporated Inventory Management 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Scientific Glass Incorporated Inventory Management 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the hazard of losing the consumer base.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual total incomes of Scientific Glass Incorporated Inventory Management 2 Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather efficient in attracting a large number of consumers at a potential price.
In addition to it, the second chart which reveals the annual development in the Scientific Glass Incorporated Inventory Management 2 Case Study Solution overall possessions, shows that the business is rather efficient in adding value to its assets through its profits. The development in properties shows that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis relating to the distribution of overall profits of the business. Huge 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 business could move towards other service segments with a possible development to attain its future advancement goal.
PESTEL analysis could be performed to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Scientific Glass Incorporated Inventory Management 2 Case Study Solution service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Scientific Glass Incorporated Inventory Management 2 Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies connected to the import of books impact the overall organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful materials and so on. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Scientific Glass Incorporated Inventory Management 2 Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Scientific Glass Incorporated Inventory Management 2 Case Study Analysis includes the concerns of environmental 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 used while publishing should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the digital libraries on specific sites. The changing customer choices towards digital knowing increase the danger of replacement for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Scientific Glass Incorporated Inventory Management 2 Case Study Solution include the providers 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.
Haggling 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 buyers needs high quality files at competitive rates.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Scientific Glass Incorporated Inventory Management 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry development. The company could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information associated with the customer need, the prospective markets, the federal government policies and the information connected to the competitors provided in the market. After that, the company ought to choose one prospective section for its initial offering. It should gather research that how it might separate its digital publishing from the existing rivals' items. The actions above the business need to go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, but the situation can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.