Apollo Tires Investment Decision Dilemma Case Study Solution and Analysis
Intro
Apollo Tires Investment Decision Dilemma Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Apollo Tires Investment Decision Dilemma Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Apollo Tires Investment Decision Dilemma Case Study Solution has specific strengths that can be made use of to reduce the dangers, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Apollo Tires Investment Decision Dilemma Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong monetary position enables the company to think about a number of development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restraints for the company in executing its development program. The weaknesses of Apollo Tires Investment Decision Dilemma Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Apollo Tires Investment Decision Dilemma Case Study Analysis as well, however the growth could be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has positioned particular hazards to Apollo Tires Investment Decision Dilemma Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Apollo Tires Investment Decision Dilemma Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be determined. Nevertheless, the total financial performance of the company could be evaluated by utilizing the graphs given up the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Apollo Tires Investment Decision Dilemma Case Study Analysis is growing and the business is rather efficient in bring in a a great deal of consumers at a prospective price.
Along with it, the second graph which reveals the annual growth in the Apollo Tires Investment Decision Dilemma Case Study Analysis total properties, reveals that the company is quite effective in adding worth to its assets through its profits. The growth in possessions shows that the total value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the circulation of total incomes 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 sectors with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Apollo Tires Investment Decision Dilemma Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies related to the import of books impact the total business at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Apollo Tires Investment Decision Dilemma Case Study Help includes the concerns of environmental neighborhoods 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A brief 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 new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Apollo Tires Investment Decision Dilemma Case Study Analysis consist of the suppliers of the paper for publishing 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 Buyer.
Negotiating power of buyer in the publishing market 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 rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Apollo Tires Investment Decision Dilemma Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular players in the publishing industry with an annual total incomes 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 chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk 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 abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an instant service to avoid the declining market growth. Intro of digital publishing might show to be an immediate option with low quantity of danger for the company. The company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must first collects the data associated with the consumer demand, the prospective markets, the government regulations and the data associated with the competitors provided in the market. After that, the business needs to choose one prospective sector for its preliminary offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' products. After all the steps above the company need to choose the preliminary offering. The company should go for the other markets if the preliminary offering proves a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a threat to the company's long term existence, however the situation can be managed by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
