Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Solution and Analysis
Introduction
Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP 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 strategies
• Improvement of science and technology.
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 capabilities of the business could be made use of to pursue the future advancement 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 Case Study Help has particular strengths that can be made use of to decrease the dangers, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints 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 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Help as well, however the growth might be revived by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned specific hazards to Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. Nevertheless, the overall monetary performance of the company might be evaluated by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Solution is growing and the business is rather efficient in bring in a large number of clients at a prospective price.
Together with it, the 2nd graph which shows the yearly development in the Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Help total properties, reveals that the company is quite effective in adding worth to its possessions through its earnings. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis regarding the distribution of total revenues of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market 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 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 Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on instructional publications. CIP acts as a threat 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 Shanzhai Bandit Mobile Phone Companies The Guerrilla Warfare Of Product Development And Supply Chain Management Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the 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 company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an immediate option to prevent the declining market growth. Intro of digital publishing could show to be an immediate option with low amount of threat for the business. Nevertheless, the business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to initially collects the information related to the customer need, the prospective markets, the government regulations and the information related to the competitors presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, showing a hazard to the company's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
