Apollo Group Case Study Solution and Analysis
Intro
Apollo Group Case Study Solution 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 service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and Apollo Group Case Study Help in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Apollo Group Case Study Solution has certain strengths that can be made use of to decrease the hazards, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Apollo Group Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position permits the business to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Apollo Group Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Apollo Group Case Study Analysis also, but the development could be restored by availing particular opportunities provided in the market. The market 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 could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has postured particular hazards to Apollo Group Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Apollo Group Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market along with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be computed. The general monetary efficiency of the business might be evaluated by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Apollo Group Case Study Solution is growing and the company is rather effective in bring in a large number of clients at a possible price.
In addition to it, the second graph which shows the annual growth in the Apollo Group Case Study Help total possessions, shows that the business is rather effective in including value to its properties through its revenues. The growth in properties shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis regarding the distribution of overall earnings of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the total political forces affecting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development 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 choices towards reading helpful products and so on. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the Apollo Group Case Study Analysis. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Apollo Group Case Study Help consists of 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 non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Apollo Group Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Competitors 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 highest market share in the Chinese publishing market. Significant rivals of Apollo Group Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company 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 company need an instant option to avoid the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should initially gathers the information connected to the consumer demand, the prospective markets, the federal government policies and the information connected to the competitors provided in the market. After that, the company should choose one potential section for its preliminary offering. It should collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the business must choose the preliminary offering. If the initial offering shows a success, the business should choose the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
