Supply Chain Management And Distribution Network Strategy 3 Case Study Solution and Analysis
Introduction
Supply Chain Management And Distribution Network Strategy 3 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and Supply Chain Management And Distribution Network Strategy 3 Case Study Help in specific. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized 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 Management And Distribution Network Strategy 3 Case Study Analysis has certain strengths that can be used to decrease the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Supply Chain Management And Distribution Network Strategy 3 Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position enables the business to think about several development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis are offered 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 ought to propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, impacting Supply Chain Management And Distribution Network Strategy 3 Case Study Solution as well, however the development might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain risks to Supply Chain Management And Distribution Network Strategy 3 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Supply Chain Management And Distribution Network Strategy 3 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry together with presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be computed. The total monetary efficiency of the company could be evaluated by utilizing the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Supply Chain Management And Distribution Network Strategy 3 Case Study Help is growing and the company is rather efficient in bring in a a great deal of consumers at a prospective price.
Along with it, the second graph which shows the yearly development in the Supply Chain Management And Distribution Network Strategy 3 Case Study Help total assets, shows that the company is quite efficient in including value to its properties through its incomes. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis concerning the distribution of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the general political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market. Together with it, the economic policies related to the import of books impact the total company 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 consist of the population development, the customer's preferences towards reading informative materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Supply Chain Management And Distribution Network Strategy 3 Case Study Help consists of the concerns of environmental 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 should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Supply Chain Management And Distribution Network Strategy 3 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sections, with a significant focus on educational publications. CIP functions 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 could wean the market share of Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• 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 demand 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 rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an immediate option to avoid the decreasing market growth. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of risk for the company. Nevertheless, the business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the consumer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a threat to the business's long term existence, however the circumstance can be controlled by thinking about 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 threat of failure for entrance in the brand-new markets.
