The Long And Short Of Apollo Group Case Study Solution and Analysis
Introduction
The Long And Short Of Apollo Group Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing info and communication services. Major company segments of the business include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. The Long And Short Of Apollo Group Case Study Solution has actually ended up being a specialized information provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, The Long And Short Of Apollo Group Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several concerns 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
The Long And Short Of Apollo Group Case Study Solution has certain strengths that can be used to minimize the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Long And Short Of Apollo Group Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong monetary position allows the company to think about several development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase restraints for the business in implementing its development program. The weaknesses of The Long And Short Of Apollo Group Case Study Help are provided 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 needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, affecting The Long And Short Of Apollo Group Case Study Solution as well, but the growth might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has posed certain dangers to The Long And Short Of Apollo Group Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of The Long And Short Of Apollo Group Case Study Help due to the customer shift towards digital 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 competitors can gain a strong consumer base by using certain techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The general monetary efficiency of the company could be examined by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of The Long And Short Of Apollo Group Case Study Solution is growing and the company is rather efficient in drawing in a large number of customers at a potential rate.
In addition to it, the second chart which reveals the yearly growth in the The Long And Short Of Apollo Group Case Study Help total assets, reveals that the company is rather effective in adding value to its assets through its incomes. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis relating to the circulation of total revenues of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting The Long And Short Of Apollo Group Case Study Help business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Long And Short Of Apollo Group Case Study Solution consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Long And Short Of Apollo Group Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Long And Short Of Apollo Group Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in different market sectors, with a significant focus on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of The Long And Short Of Apollo Group Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as The Long And Short Of Apollo Group Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• 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 business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing market growth. The company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first collects the information related to the consumer need, the potential markets, the government regulations and the information connected to the competitors provided in the market. After that, the company needs to choose one possible segment for its initial offering. It must collect research study that how it could differentiate its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. If the initial offering proves a success, the business needs to opt for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a danger to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
