Apex Investment Partners Case Study Solution and Analysis
Introduction
Apex Investment Partners Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Apex Investment Partners Case Study Analysis in particular. These elements 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 a number of concerns 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 business 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
Apex Investment Partners Case Study Analysis has particular strengths that can be utilized to reduce the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Apex Investment Partners Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the company to consider several development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of Apex Investment Partners Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Apex Investment Partners Case Study Analysis too, however the development could be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented specific hazards to Apex Investment Partners Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Apex Investment Partners Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly total earnings of Apex Investment Partners Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a big number of customers at a potential rate.
Along with it, the second chart which shows the yearly growth in the Apex Investment Partners Case Study Analysis total properties, shows that the company is quite effective in adding worth to its possessions through its incomes. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis relating to the circulation of overall profits of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different 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 company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Apex Investment Partners Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the general service at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Apex Investment Partners Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs 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 entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Apex Investment Partners Case Study Help include the suppliers 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 buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Apex Investment Partners Case Study Analysis consist of;.
• Chemical Market 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).
It was likewise established in the same duration as Apex Investment Partners Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• 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 current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining market development. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should first collects the data connected to the consumer need, the potential markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the business ought to choose one prospective section for its initial offering. It must collect research study that how it might distinguish its digital publishing from the existing rivals' items. The actions above the business ought to go for the initial offering. If the preliminary offering shows a success, the business should choose the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, showing a threat to the company's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
