Scientific Glass Incorporated Inventory Management 2 Case Study Solution and Analysis
Introduction
Scientific Glass Incorporated Inventory Management 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and Scientific Glass Incorporated Inventory Management 2 Case Study Help in particular. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous 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 company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Scientific Glass Incorporated Inventory Management 2 Case Study Analysis has specific strengths that can be made use of to reduce the hazards, conquer the weakness and obtain the chances. Strengths of CMP are given 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 provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position permits the business to think about numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restraints for the company in executing its advancement program. The weak points of Scientific Glass Incorporated Inventory Management 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Scientific Glass Incorporated Inventory Management 2 Case Study Help as well, however the development could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business could 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 decrease its reliance over Chinese markets by using its vast funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has posed certain risks to Scientific Glass Incorporated Inventory Management 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Scientific Glass Incorporated Inventory Management 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the general financial efficiency of the company could be analyzed by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Scientific Glass Incorporated Inventory Management 2 Case Study Analysis is growing and the business is rather effective in attracting a large number of clients at a potential cost.
Together with it, the second graph which shows the yearly development in the Scientific Glass Incorporated Inventory Management 2 Case Study Solution overall possessions, shows that the company is quite effective in including value to its assets through its earnings. The development in assets reveals that the overall value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the distribution of total incomes of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the company and the recent patterns 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 could have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Scientific Glass Incorporated Inventory Management 2 Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Scientific Glass Incorporated Inventory Management 2 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to 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 entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given 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 bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the digital libraries on particular sites. The altering consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition 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. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Scientific Glass Incorporated Inventory Management 2 Case Study Solution consist of the suppliers of the paper for publishing 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 market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. 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 Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Scientific Glass Incorporated Inventory Management 2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining industry growth. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must first gathers the information associated with the consumer need, the potential markets, the federal government regulations and the information connected to the competitors provided in the market. After that, the company ought to choose one possible sector for its initial offering. It must collect research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the company ought to go for the preliminary offering. The company should go for the other markets if the initial offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a danger to the company's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
