How Apples Corporate Strategy Drives High Growth Case Study Solution and Analysis
How Apples Corporate Strategy Drives High Growth Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing details and interaction services. Significant service segments of the company consist of; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major items include books, periodicals, online media, exhibitions, research reports and so on. How Apples Corporate Strategy Drives High Growth Case Study Solution has become a specialized details service provider and a big detailed 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 efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and How Apples Corporate Strategy Drives High Growth Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
How Apples Corporate Strategy Drives High Growth Case Study Analysis has specific strengths that can be made use of to minimize the threats, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of How Apples Corporate Strategy Drives High Growth Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position enables the company to consider a number of development opportunities without any fear of raising fund externally.
Along with the strengths, the business has certain weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of How Apples Corporate Strategy Drives High Growth Case Study Help are offered as follows;
• Despite of being a science and innovation 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 development. It should propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
The development of the publishing market is declining considering that 2008, affecting How Apples Corporate Strategy Drives High Growth Case Study Analysis as well, but the growth might be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competition in the publishing market has actually presented specific dangers to How Apples Corporate Strategy Drives High Growth Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of How Apples Corporate Strategy Drives High Growth Case Study Analysis due to the customer shift towards digital 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 competitors can acquire a strong consumer base by using particular techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the customer base.
The company has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. The overall financial efficiency of the company might be analyzed by utilizing the charts provided in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of How Apples Corporate Strategy Drives High Growth Case Study Solution is growing and the company is rather effective in drawing in a large number of consumers at a possible rate.
Together with it, the second graph which reveals the annual development in the How Apples Corporate Strategy Drives High Growth Case Study Help total assets, reveals that the business is quite effective in adding worth to its properties through its profits. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the circulation of overall profits of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a prospective growth to attain its future advancement objective.
PESTEL analysis could be conducted to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
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 combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the How Apples Corporate Strategy Drives High Growth Case Study Analysis. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting How Apples Corporate Strategy Drives High Growth Case Study Help includes 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 should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the threat of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the How Apples Corporate Strategy Drives High Growth Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of How Apples Corporate Strategy Drives High Growth Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in numerous market segments, with a significant concentrate on academic publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of How Apples Corporate Strategy Drives High Growth Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as How Apples Corporate Strategy Drives High Growth Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining industry development. Introduction of digital publishing might prove to be an instant option with low quantity of risk for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must first gathers the data connected to the customer demand, the possible markets, the federal government policies and the information connected to the rivals presented in the market. After that, the business needs to choose one possible segment for its preliminary offering. It needs to gather research that how it might differentiate its digital publishing from the existing rivals' items. The actions above the company ought to go for the preliminary offering. If the initial offering proves a success, the business should go for the other markets. In this method the company would have the ability to implement its digital publishing program.
The development of the publishing market is declining considering that 2008, showing a danger to the business's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.