Supply Chain Management And Distribution Network Strategy Case Study Solution and Analysis
Supply Chain Management And Distribution Network Strategy Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing info and interaction services. Significant service segments of the business include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports and so on. Supply Chain Management And Distribution Network Strategy Case Study Analysis has ended up being a specialized details supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and Supply Chain Management And Distribution Network Strategy Case Study Analysis in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Supply Chain Management And Distribution Network Strategy Case Study Help has particular strengths that can be made use of to reduce the dangers, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Supply Chain Management And Distribution Network Strategy Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position allows the business to think about several advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has specific weak points which might increase restraints for the business in executing its advancement program. The weak points of Supply Chain Management And Distribution Network Strategy Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is declining considering that 2008, impacting Supply Chain Management And Distribution Network Strategy Case Study Solution as well, but the development might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competition in the publishing market has actually presented certain dangers to Supply Chain Management And Distribution Network Strategy Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Supply Chain Management And Distribution Network Strategy Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry together with existence of high competitors increases the danger of losing the customer base.
The business has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be determined. The overall financial performance of the company might be analyzed by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Supply Chain Management And Distribution Network Strategy Case Study Help is growing and the business is rather effective in bring in a a great deal of clients at a potential rate.
In addition to it, the 2nd chart which reveals the yearly development in the Supply Chain Management And Distribution Network Strategy Case Study Help overall properties, reveals that the company is quite effective in adding worth to its possessions through its earnings. The development in properties shows that the total value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the distribution of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a possible growth to achieve its future advancement goal.
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Supply Chain Management And Distribution Network Strategy Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial 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 growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out useful products and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Supply Chain Management And Distribution Network Strategy Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Supply Chain Management And Distribution Network Strategy Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market 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 Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on certain websites. The altering customer preferences towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Supply Chain Management And Distribution Network Strategy Case Study Analysis consist of the suppliers of the paper for releasing files. 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 Buyer.
Bargaining power of buyer in the publishing industry 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.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company 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 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sectors, with a major concentrate on academic publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Supply Chain Management And Distribution Network Strategy Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
As the choices are shifting towards digital publishing and the company need an instant option to avoid the declining industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially gathers the information related to the customer demand, the potential markets, the government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, showing a danger to the company's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.