Supply Chain And Distribution Network Of Amazon In European Countries Case Study Solution and Analysis
Intro
Supply Chain And Distribution Network Of Amazon In European Countries Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Supply Chain And Distribution Network Of Amazon In European Countries Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing market in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the abilities of the company could be used 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
Supply Chain And Distribution Network Of Amazon In European Countries Case Study Help has specific strengths that can be used to decrease the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Supply Chain And Distribution Network Of Amazon In European Countries Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the company to think about numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Supply Chain And Distribution Network Of Amazon In European Countries Case Study Analysis are provided 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 extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Supply Chain And Distribution Network Of Amazon In European Countries Case Study Help as well, however the growth might be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented specific dangers to Supply Chain And Distribution Network Of Amazon In European Countries Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Supply Chain And Distribution Network Of Amazon In European Countries Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total incomes of Supply Chain And Distribution Network Of Amazon In European Countries Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is rather efficient in bring in a large number of customers at a prospective cost.
In addition to it, the second graph which shows the yearly growth in the Supply Chain And Distribution Network Of Amazon In European Countries Case Study Help overall assets, reveals that the company is rather efficient in adding worth to its properties through its profits. The growth in possessions reveals that the total worth of the company is also increasing with increasing the total earnings. (Unidentified, 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 revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of customers of the Supply Chain And Distribution Network Of Amazon In European Countries Case Study Help. Nevertheless, the customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Supply Chain And Distribution Network Of Amazon In European Countries Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines 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 Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition 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 rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Supply Chain And Distribution Network Of Amazon In European Countries Case Study Help include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier 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 market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Supply Chain And Distribution Network Of Amazon In European Countries Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 might wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the company require an instant service to avoid the declining industry development. Introduction of digital publishing might prove to be an instant option with low quantity of risk for the business. Nevertheless, the business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the information associated with the consumer need, the potential markets, the government policies and the data connected to the competitors provided in the market. After that, the business must choose one prospective segment for its initial offering. It should collect research study that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business need to go for the initial offering. If the preliminary offering proves a success, the business must choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a hazard to the business's long term existence, however the situation can be controlled by considering an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
