Strategic Planning At Apple Inc 2 Case Study Solution and Analysis
Introduction
Strategic Planning At Apple Inc 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Strategic Planning At Apple Inc 2 Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change 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 abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strategic Planning At Apple Inc 2 Case Study Help has specific strengths that can be used to minimize the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Strategic Planning At Apple Inc 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong monetary position permits the business to think about numerous development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which might increase constraints for the company in executing its advancement program. The weak points of Strategic Planning At Apple Inc 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining because 2008, affecting Strategic Planning At Apple Inc 2 Case Study Solution too, however the growth could be revived by availing particular chances presented in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain threats to Strategic Planning At Apple Inc 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Strategic Planning At Apple Inc 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals 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 using certain methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall incomes of Strategic Planning At Apple Inc 2 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is rather effective in bring in a large number of consumers at a prospective rate.
In addition to it, the second chart which shows the yearly growth in the Strategic Planning At Apple Inc 2 Case Study Help overall properties, shows that the business is quite efficient in adding value to its possessions through its profits. The development in possessions shows that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis regarding the distribution of overall revenues of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Strategic Planning At Apple Inc 2 Case Study Solution service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Strategic Planning At Apple Inc 2 Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies associated with the import of books affect the overall business at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Strategic Planning At Apple Inc 2 Case Study Analysis consists of the issues of ecological communities 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 damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers 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 entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Strategic Planning At Apple Inc 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market 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 files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Strategic Planning At Apple Inc 2 Case Study Analysis consist of;.
• Chemical Market 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 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 founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the business require an instant option to avoid the declining market development. Introduction of digital publishing could show to be an immediate service with low amount of threat for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer demand, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
