Supply Chain Coordination And Contracts Case Study Solution and Analysis
Introduction
Supply Chain Coordination And Contracts Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in general and Supply Chain Coordination And Contracts Case Study Help in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Supply Chain Coordination And Contracts Case Study Analysis has specific strengths that can be utilized to decrease the threats, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Supply Chain Coordination And Contracts Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position permits the company to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restrictions for the company in implementing its advancement program. The weaknesses of Supply Chain Coordination And Contracts Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting Supply Chain Coordination And Contracts Case Study Help also, however the growth could be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing market has posed specific risks to Supply Chain Coordination And Contracts Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Supply Chain Coordination And Contracts Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry together with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP might not be determined. The general monetary efficiency of the company might be evaluated by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual 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 Supply Chain Coordination And Contracts Case Study Analysis is growing and the business is quite effective in attracting a a great deal of consumers at a possible price.
In addition to it, the second chart which reveals the yearly growth in the Supply Chain Coordination And Contracts Case Study Help overall possessions, reveals that the business is quite effective in including worth to its assets through its revenues. The development in assets shows that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the provided data might be the analysis concerning the distribution of total incomes of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting Supply Chain Coordination And Contracts Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Supply Chain Coordination And Contracts Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall business at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative products etc. China has the highest population in the world with a high population development, revealing the increasing variety of customers of the Supply Chain Coordination And Contracts Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Supply Chain Coordination And Contracts Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first 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.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the documents presented in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number 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, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Supply Chain Coordination And Contracts Case Study Help include the suppliers of the paper for publishing files. 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.
Negotiating 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 marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Supply Chain Coordination And Contracts Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 quickly in the existing market situation.
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 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger 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 risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant solution to prevent the decreasing industry growth. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first collects the information related to the customer demand, the possible markets, the government regulations and the data connected to the competitors provided in the market. After that, the company should choose one prospective sector for its preliminary offering. It ought to gather research that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the business must opt for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
