Supply Chain Management And Distribution Network Strategy 2 Case Study Solution and Analysis
Introduction
Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing details and interaction services. Major business sections of the business include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis has ended up being a specialized details provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Supply Chain Management And Distribution Network Strategy 2 Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis has certain strengths that can be utilized to lower the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Supply Chain Management And Distribution Network Strategy 2 Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the company to think about a number of development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Supply Chain Management And Distribution Network Strategy 2 Case Study Solution also, however the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually posed certain risks to Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Supply Chain Management And Distribution Network Strategy 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be computed. Nevertheless, the total financial performance of the business might be examined by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Supply Chain Management And Distribution Network Strategy 2 Case Study Help is growing and the company is rather efficient in attracting a large number of customers at a possible cost.
In addition to it, the 2nd graph which reveals the annual development in the Supply Chain Management And Distribution Network Strategy 2 Case Study Solution overall properties, reveals that the company is quite efficient in including worth to its properties through its incomes. The growth in assets shows that the overall value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis relating to the distribution of total incomes of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be stated that the general political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading informative products and so on. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Supply Chain Management And Distribution Network Strategy 2 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 required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the digital libraries on specific sites. The altering consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. 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 Buyer.
Bargaining power of purchaser 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 buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in different market segments, with a major focus on academic publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the prominent gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an immediate service to avoid the declining industry growth. The business could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information related to the customer demand, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, revealing a threat to the company's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
