Apple Inc 6 Case Study Solution and Analysis
Introduction
Apple Inc 6 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and Apple Inc 6 Case Study Help in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Apple Inc 6 Case Study Analysis has specific strengths that can be made use of to decrease the risks, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Apple Inc 6 Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position enables the company to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Apple Inc 6 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining considering that 2008, affecting Apple Inc 6 Case Study Analysis as well, but the growth could be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually presented specific risks to Apple Inc 6 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Apple Inc 6 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market together with existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual overall profits of Apple Inc 6 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in bring in a big number of consumers at a possible rate.
In addition to it, the 2nd graph which shows the yearly development in the Apple Inc 6 Case Study Analysis overall possessions, reveals that the company is rather efficient in including worth to its properties through its profits. The growth in assets reveals that the total value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis relating to the circulation of total earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading helpful materials etc. China has the greatest population in the world with a high population development, revealing the increasing variety of customers of the Apple Inc 6 Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Apple Inc 6 Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Apple Inc 6 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Apple Inc 6 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
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 items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an immediate solution to prevent the decreasing industry development. Intro of digital publishing might prove to be an instant option with low amount of threat for the business. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the information related to the consumer demand, the prospective markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a risk to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
