Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution and Analysis
Introduction
Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of 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 made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Technology Designed To Combat Fakes In The Global Supply Chain Case Study Help has particular strengths that can be made use of to minimize the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Technology Designed To Combat Fakes In The Global Supply Chain Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position enables the business to think about several advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase restraints for the business in implementing its development program. The weak points of Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Technology Designed To Combat Fakes In The Global Supply Chain Case Study Help too, but the growth might be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured certain hazards to Technology Designed To Combat Fakes In The Global Supply Chain Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Technology Designed To Combat Fakes In The Global Supply Chain Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market together with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. Nevertheless, the general monetary performance of the business could be evaluated by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution is growing and the business is rather efficient in bring in a large number of customers at a potential cost.
Along with it, the 2nd graph which reveals the annual growth in the Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution overall properties, shows that the company is quite effective in including value to its assets through its revenues. The growth in properties reveals that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the distribution of overall earnings of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of consumers of the Technology Designed To Combat Fakes In The Global Supply Chain Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Technology Designed To Combat Fakes In The Global Supply Chain Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the files provided in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Technology Designed To Combat Fakes In The Global Supply Chain Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry 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 rivals of Technology Designed To Combat Fakes In The Global Supply Chain Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market growth. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially gathers the information associated with the consumer demand, the prospective markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the business must choose one possible section for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the business should opt for the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term presence, however the situation can be managed by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
