Supply Chain Management And Distribution Network Strategy 2 Case Study Solution and Analysis
Supply Chain Management And Distribution Network Strategy 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing information and communication services. Major service sections of the company include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis has ended up being a specialized information service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing industry in general and Supply Chain Management And Distribution Network Strategy 2 Case Study Help in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 abilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Supply Chain Management And Distribution Network Strategy 2 Case Study Solution has particular strengths that can be made use of to lower the risks, get rid of the weakness and avail 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 industry i.e. 60 years enables the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position enables the business to consider a number of development opportunities with no worry of raising fund externally.
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, 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 growth. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
The development of the publishing industry is declining given that 2008, impacting Supply Chain Management And Distribution Network Strategy 2 Case Study Help as well, but the development could be revived by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented specific threats to Supply Chain Management And Distribution Network Strategy 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis due to the consumer 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 gain a strong consumer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry together with existence of high competitors increases the danger of losing the customer base.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be computed. The total financial efficiency of the business might be analyzed by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of customers at a possible price.
Together with it, the second chart which shows the annual growth in the Supply Chain Management And Distribution Network Strategy 2 Case Study Solution total properties, shows that the business is rather efficient in including value to its possessions through its earnings. The growth in assets shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis relating to the circulation of overall incomes of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a potential growth to achieve its future advancement objective.
PESTEL analysis could be conducted to find out the various external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the overall political forces impacting Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Supply Chain Management And Distribution Network Strategy 2 Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies related to the import of books affect the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products etc. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the Supply Chain Management And Distribution Network Strategy 2 Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing consumer preferences.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence 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. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Supply Chain Management And Distribution Network Strategy 2 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general 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 large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Supply Chain Management And Distribution Network Strategy 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry growth. Intro of digital publishing could show to be an immediate service with low quantity of risk for the company. The business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the consumer need, the prospective markets, the federal government policies and the information connected to the competitors presented in the market. After that, the company needs to decide one prospective segment for its preliminary offering. It should collect research that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company must go for the initial offering. If the initial offering proves a success, the company must go for the other markets. In this way the business would have the ability to implement its digital publishing program.
The development of the publishing market is declining given that 2008, showing a threat to the business's long term presence, but the scenario 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 development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.