Supply Chain Management And Distribution Network Strategy Case Study Solution and Analysis
Introduction
Supply Chain Management And Distribution Network Strategy Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Supply Chain Management And Distribution Network Strategy Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be used 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 Case Study Help has particular strengths that can be made use of to decrease the threats, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Supply Chain Management And Distribution Network Strategy Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong monetary position enables the company to think about numerous advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Supply Chain Management And Distribution Network Strategy Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining because 2008, affecting Supply Chain Management And Distribution Network Strategy Case Study Analysis too, however the development might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured specific hazards to Supply Chain Management And Distribution Network Strategy Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Supply Chain Management And Distribution Network Strategy Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be determined. The overall monetary efficiency of the business could be examined by utilizing the charts offered in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Supply Chain Management And Distribution Network Strategy Case Study Solution is growing and the business is quite effective in bring in a a great deal of customers at a prospective rate.
Together with it, the second graph which shows the yearly development in the Supply Chain Management And Distribution Network Strategy Case Study Help overall properties, reveals that the business is rather efficient in adding worth to its properties through its earnings. The development in assets reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the circulation of total revenues of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business 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 substantial impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices 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.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative materials etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Supply Chain Management And Distribution Network Strategy Case Study Analysis. Nevertheless, the customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Supply Chain Management And Distribution Network Strategy Case Study Analysis consists of the concerns of ecological 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 ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the virtual libraries on certain sites. The altering consumer choices towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Supply Chain Management And Distribution Network Strategy Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Supply Chain Management And Distribution Network Strategy Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market segments, with a major concentrate on instructional publications. CIP acts as a hazard 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 Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the declining industry growth. For that reason, introduction of digital publishing could prove to be an immediate solution with low amount of threat for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should initially gathers the data related to the consumer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a hazard to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
