Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution and Analysis
Introduction
Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing info and communication services. Major company sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution has ended up being a specialized information company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Help has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of 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 abilities of the company could be used 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
Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution has particular strengths that can be utilized to reduce the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the company to think about numerous advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution are offered 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 specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Help also, but the growth might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has presented certain dangers to Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP might not be calculated. However, the overall monetary efficiency of the business might be evaluated by using the graphs given up the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Analysis is growing and the business is quite efficient in attracting a a great deal of consumers at a possible cost.
Together with it, the second chart which reveals the yearly development in the Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Analysis overall assets, reveals that the business is quite efficient in including value to its properties through its incomes. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis relating to the circulation of overall profits of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the general business at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Unilever Tea A Revitalizing Liptons Supply Chain 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using 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 concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant solution to avoid the decreasing market development. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must first collects the information related to the customer need, the potential markets, the government regulations and the data related to the competitors 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.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a hazard to the business's long term presence, but the situation can be managed by thinking about a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
