Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Solution and Analysis
Introduction
Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Solution in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised several questions 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Analysis has certain strengths that can be made use of to minimize the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position allows the business to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the business in executing its development program. The weak points of Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Solution as well, but the growth might be restored by availing specific opportunities provided in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has postured specific dangers to Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market together with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly total incomes of Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential rate.
Together with it, the second graph which shows the yearly development in the Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Help overall properties, shows that the business is rather efficient in including value to its properties through its incomes. The development in possessions reveals that the overall value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis regarding the distribution of total earnings of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Help service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books impact the general service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Help consists of the issues of ecological 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 used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. 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 Market. The substitute products for the released documents is the documents provided in the digital libraries on specific sites. The changing customer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Supply Chain Optimization At Madurai Aavin Milk Dairy 2 Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal 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 Optimization At Madurai Aavin Milk Dairy 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market growth. The company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first collects the information related to the consumer need, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this way 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 hazard to the company's long term existence, but the situation can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
