Volkswagen Warehousing Strategy Case Study Solution and Analysis
Introduction
Volkswagen Warehousing Strategy Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and Volkswagen Warehousing Strategy Case Study Solution in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Volkswagen Warehousing Strategy Case Study Analysis has specific strengths that can be utilized to lower the risks, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Volkswagen Warehousing Strategy Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position permits the business to think about several advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of Volkswagen Warehousing Strategy Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, 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 development. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting Volkswagen Warehousing Strategy Case Study Help as well, however the growth could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise 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 expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has posed specific dangers to Volkswagen Warehousing Strategy Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Volkswagen Warehousing Strategy Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be computed. The general monetary efficiency of the business could be analyzed by using the graphs provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of Volkswagen Warehousing Strategy Case Study Help is growing and the company is rather effective in attracting a a great deal of customers at a potential cost.
Together with it, the 2nd chart which shows the yearly growth in the Volkswagen Warehousing Strategy Case Study Analysis overall assets, reveals that the company is quite efficient in including worth to its possessions through its revenues. The development in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the distribution of total revenues of the business. Major 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 organisation sections with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the efficiency of the company and the current 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 might have a significant influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces impacting Volkswagen Warehousing Strategy Case Study Solution business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative products and so on. China has the greatest population in the world with a high population growth, showing the increasing number of customers of the Volkswagen Warehousing Strategy Case Study Help. However, the consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Volkswagen Warehousing Strategy Case Study Help consists of the issues of environmental communities over the use 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 should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the virtual libraries on certain websites. The changing consumer choices towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Volkswagen Warehousing Strategy Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Volkswagen Warehousing Strategy Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a major focus on educational publications. CIP functions 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 might wean the market share of Volkswagen Warehousing Strategy Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• 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 present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the decreasing industry development. Introduction of digital publishing might prove to be an instant service with low quantity of danger for the business. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the consumer demand, the possible markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a danger to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
