Scientific Glass Incorporated Inventory Management Case Study Solution and Analysis
Introduction
Scientific Glass Incorporated Inventory Management Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Scientific Glass Incorporated Inventory Management Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns 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 abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Scientific Glass Incorporated Inventory Management Case Study Analysis has particular strengths that can be used to lower the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Scientific Glass Incorporated Inventory Management Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position permits the business to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of Scientific Glass Incorporated Inventory Management Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Scientific Glass Incorporated Inventory Management Case Study Solution too, however the development could be revived by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has positioned certain threats to Scientific Glass Incorporated Inventory Management Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Scientific Glass Incorporated Inventory Management Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors 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 utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to presence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be determined. The general monetary performance of the business could be analyzed by utilizing the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Scientific Glass Incorporated Inventory Management Case Study Analysis is growing and the business is quite efficient in bring in a large number of clients at a prospective rate.
Along with it, the second graph which reveals the yearly growth in the Scientific Glass Incorporated Inventory Management Case Study Analysis overall possessions, shows that the business is quite effective in adding value to its assets through its revenues. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the circulation of overall profits of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Scientific Glass Incorporated Inventory Management Case Study Analysis company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Scientific Glass Incorporated Inventory Management Case Study Solution in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the financial policies connected to the import of books affect the general business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Scientific Glass Incorporated Inventory Management Case Study Solution consists of the issues of ecological neighborhoods 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 harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files provided in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Scientific Glass Incorporated Inventory Management Case Study Analysis include 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 provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Scientific Glass Incorporated Inventory Management Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Scientific Glass Incorporated Inventory Management Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with an annual overall profits 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 market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce 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 customers.
Cons
• Competition 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 company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an instant option to avoid the declining market development. Therefore, introduction of digital publishing could show to be an instant solution with low quantity of threat for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must first gathers the information associated with the customer need, the potential markets, the federal government policies and the data associated with the competitors presented in the market. After that, the company needs to decide one potential section for its initial offering. It must collect research that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the company must choose the initial offering. The business ought to go for the other markets if the preliminary offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term presence, but the circumstance can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
