Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Solution and Analysis
Introduction
Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Analysis in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised numerous 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Analysis has specific strengths that can be utilized to lower the hazards, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position allows the company to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help as well, however the development could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry together with presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the business might be evaluated by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help is growing and the company is quite effective in drawing in a a great deal of consumers at a potential rate.
Along with it, the second graph which reveals the yearly development in the Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help total possessions, reveals that the business is quite effective in adding value to its properties through its incomes. The development in possessions shows that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis regarding the distribution of overall incomes of the business. Major part of the incomes 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 development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces impacting Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the general company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative products etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Analysis. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Solution 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 disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the digital libraries on certain sites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a significant concentrate on academic publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product 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 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 prevent the declining market development. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to initially collects the data related to the customer need, the prospective markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a threat to the business's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
