Supply Chain Management At Beautiful Bags Case Study Solution and Analysis
Intro
Supply Chain Management At Beautiful Bags Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing information and communication services. Significant service segments of the company consist of; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major items include books, periodicals, online media, exhibits, research reports etc. Supply Chain Management At Beautiful Bags Case Study Analysis has ended up being a specialized info provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in general and Supply Chain Management At Beautiful Bags Case Study Analysis in specific. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Supply Chain Management At Beautiful Bags Case Study Help has specific strengths that can be made use of to reduce the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Supply Chain Management At Beautiful Bags Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong monetary position enables the company to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restraints for the company in implementing its development program. The weaknesses of Supply Chain Management At Beautiful Bags Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Supply Chain Management At Beautiful Bags Case Study Analysis as well, however the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company might also introduce 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 growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Supply Chain Management At Beautiful Bags Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Supply Chain Management At Beautiful Bags Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. The general financial performance of the company might be analyzed by using the charts offered in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Supply Chain Management At Beautiful Bags Case Study Help is growing and the business is rather efficient in bring in a large number of customers at a possible cost.
Along with it, the 2nd graph which reveals the yearly growth in the Supply Chain Management At Beautiful Bags Case Study Solution total assets, reveals that the business is rather effective in adding worth to its assets through its earnings. The development in possessions reveals that the total value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided information might be the analysis relating to the circulation of total earnings of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Supply Chain Management At Beautiful Bags Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Supply Chain Management At Beautiful Bags Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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 rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Supply Chain Management At Beautiful Bags Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Supply Chain Management At Beautiful Bags Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sectors, with a major concentrate on instructional publications. CIP serves as a risk 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 Supply Chain Management At Beautiful Bags Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Supply Chain Management At Beautiful Bags Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues 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.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an instant solution to prevent the decreasing market growth. For that reason, introduction of digital publishing might show to be an immediate option with low amount of danger for the company. The business might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should first collects the data related to the customer need, the potential markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a threat to the business's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
