Supply Chain Management And Distribution Network Strategy 3 Case Study Solution and Analysis
Supply Chain Management And Distribution Network Strategy 3 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Supply Chain Management And Distribution Network Strategy 3 Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 business sustain its long term competitive position in future?
Supply Chain Management And Distribution Network Strategy 3 Case Study Help has particular strengths that can be used to decrease the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Supply Chain Management And Distribution Network Strategy 3 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the business to consider a number of development chances without any fear of raising fund externally.
In addition to the strengths, the company has specific weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is decreasing given that 2008, affecting Supply Chain Management And Distribution Network Strategy 3 Case Study Help also, however the development might be revived by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned specific hazards to Supply Chain Management And Distribution Network Strategy 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence 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 consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the risk of losing the consumer base.
Due to lack of data, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual overall profits of Supply Chain Management And Distribution Network Strategy 3 Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather efficient in bring in a big number of clients at a potential price.
Together with it, the 2nd chart which reveals the yearly growth in the Supply Chain Management And Distribution Network Strategy 3 Case Study Help total properties, reveals that the business is quite effective in including worth to its assets through its incomes. The growth in possessions reveals that the overall value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis regarding the circulation of overall profits 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 company might move towards other service sections with a possible development to achieve its future advancement objective.
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting Supply Chain Management And Distribution Network Strategy 3 Case Study Solution company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Supply Chain Management And Distribution Network Strategy 3 Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the general company at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Supply Chain Management And Distribution Network Strategy 3 Case Study Analysis. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces affecting Supply Chain Management And Distribution Network Strategy 3 Case Study Solution includes the concerns of ecological neighborhoods 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 should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers 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 overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 documents at competitive rates.
CMP runs in an extremely competitive market with the existence 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 include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Supply Chain Management And Distribution Network Strategy 3 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company require an instant option to prevent the decreasing market growth. Therefore, intro of digital publishing could prove to be an immediate service with low amount of threat for the business. The business could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must first gathers the data connected to the customer need, the potential markets, the government policies and the data associated with the rivals provided in the market. After that, the company must decide one potential segment for its preliminary offering. It must gather research study that how it could differentiate its digital publishing from the existing rivals' products. The steps above the business should go for the preliminary offering. The company needs to go for the other markets if the preliminary offering shows a success. In this way the company would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining because 2008, showing a danger to the company's long term presence, however the scenario can be managed by thinking about an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.