Apollo Tires Investment Decision Dilemma Case Study Solution and Analysis
Apollo Tires Investment Decision Dilemma Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing information and communication services. Significant service sectors of the company include; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports etc. Apollo Tires Investment Decision Dilemma Case Study Solution has actually ended up being a specialized details supplier and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and Apollo Tires Investment Decision Dilemma Case Study Solution in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous 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 utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Apollo Tires Investment Decision Dilemma Case Study Solution has certain strengths that can be made use of to minimize the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Apollo Tires Investment Decision Dilemma Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the business to think about several advancement chances without any fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which could increase restrictions for the company in executing its development program. The weak points of Apollo Tires Investment Decision Dilemma Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing industry is decreasing considering that 2008, affecting Apollo Tires Investment Decision Dilemma Case Study Help as well, however the growth might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large funds.
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular dangers to Apollo Tires Investment Decision Dilemma Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Apollo Tires Investment Decision Dilemma Case Study Analysis due to the customer 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 competitors can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the risk of losing the customer base.
Due to absence of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly overall incomes of Apollo Tires Investment Decision Dilemma Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather effective in drawing in a big number of clients at a prospective cost.
In addition to it, the 2nd graph which reveals the annual growth in the Apollo Tires Investment Decision Dilemma Case Study Solution overall assets, shows that the business is quite effective in including worth to its properties through its revenues. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis regarding the circulation of total incomes of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a possible development to accomplish its future advancement objective.
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Apollo Tires Investment Decision Dilemma Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the total company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading informative materials etc. China has the highest population on the planet with a high population growth, showing the increasing number of customers of the Apollo Tires Investment Decision Dilemma Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting Apollo Tires Investment Decision Dilemma Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents presented in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the danger of alternative for the market.
Competitive competition in the publishing industry 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 competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Apollo Tires Investment Decision Dilemma Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Apollo Tires Investment Decision Dilemma Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an instant solution to prevent the declining market development. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of danger for the company. However, the business might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially gathers the information related to the consumer demand, the possible markets, the federal government policies and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining given that 2008, showing a risk to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.