Apollo Tires Case Study Solution and Analysis
Intro
Apollo Tires Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing information and interaction services. Significant company sectors of the company consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major products include books, regulars, online media, exhibitions, research study reports etc. Apollo Tires Case Study Solution has become a specialized information service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and Apollo Tires Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement 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 valuable experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Apollo Tires Case Study Help has particular strengths that can be made use of to reduce the threats, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Apollo Tires Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position permits the business to consider numerous development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Apollo Tires Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Apollo Tires Case Study Analysis too, but the development might be restored by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has posed particular risks to Apollo Tires Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Apollo Tires Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly total profits of Apollo Tires Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is rather efficient in drawing in a big number of clients at a prospective price.
Along with it, the 2nd chart which shows the yearly development in the Apollo Tires Case Study Help total possessions, shows that the business is quite efficient in adding worth to its properties through its revenues. The growth in properties shows that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the circulation of overall earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the company and the current trends 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 might have a significant effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could 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.
Affordable.
Financial forces affecting the publishing sector in general and the Apollo Tires Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies connected to the import of books impact the overall business at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Apollo Tires Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Apollo Tires Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the digital libraries on particular websites. The changing consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
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 also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Apollo Tires Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer 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 purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Apollo Tires Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a major concentrate on educational publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Apollo Tires Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Apollo Tires Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
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 new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an instant solution to prevent the declining market development. Therefore, intro of digital publishing could prove to be an instant service with low amount of threat for the company. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first collects the data related to the consumer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a threat to the business's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
