Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Solution and Analysis
Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; gathering info, processing information and interaction services. Major company sections of the business include; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products consist of books, regulars, online media, exhibitions, research reports etc. Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Analysis has ended up being a specialized info provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Analysis has certain strengths that can be utilized to minimize the dangers, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the company to think about a number of advancement opportunities without any worry of raising fund externally.
In addition to the strengths, the company has particular weak points which might increase restrictions for the business in executing its development program. The weaknesses of Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is declining given that 2008, affecting Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Analysis as well, however the growth might be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has presented particular dangers to Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the hazard of losing the client base.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. However, the general financial efficiency of the company could be evaluated by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Solution is growing and the business is quite effective in attracting a large number of customers at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Analysis overall possessions, shows that the company is rather efficient in including value to its properties through its earnings. The growth in assets reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis regarding the circulation of total incomes of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a potential development to achieve its future advancement objective.
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading helpful products and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Help. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Supply Chain Optimization At Madurai Aavin Milk Dairy 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 non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the documents presented in the digital libraries on certain sites. The changing customer choices towards digital learning increase the danger of substitution for the market.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Supply Chain Optimization At Madurai Aavin Milk Dairy Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
CMP runs in an extremely competitive market 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 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing market development. The business might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first collects the information related to the customer need, the prospective markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
The development of the publishing industry is decreasing because 2008, showing a hazard to the business's long term presence, however the scenario can be controlled by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.