CASE ANALYSIS OF APTECH LIMITED

SUBMITTED BY:- GROUP ‘I’

Group Members:-

 Agnitra Ghosh 2013PGP063

Aishwarya V R 2013PGP116

Apoorva Sharma 2013PGP070

Gaurav Bhardwaj 2013PGP081

Jyoti Ranjan Behera 2013PGP086

Mohit Gupta 2013PGP093

Rishabh Singh 2013PGP109

AGENDA

Recommendations

Decision Making

InternationalizationSWOTStrategiesProduct

Portfolio

Company Backgroun

d

COMPANY BACKGROUND

A global retail and corporate training solutions provider First IT Education company to get an ISO 9001:2000 certification in 1993 Got listed on NSE and BSE in 2002 with FV of Rs. 10 Demerger of Education and Training as separate business units at the

onset of economic downturn First in Multimedia and Animation Training with ARENA Forayed into Corporate and Institutional Markets Entered into eLearning and Content Development Space for global

corporations Cost containment by six sigma methodology and centralization of retail

centers by adopting e-CAS and ERP

PRODUCT PORTFOLIO

Multimedia and Animation Training

Government School Business

eLearning/Content Development

Corporate Training Solutions Soft-skills training Online testing

services (ATTEST)

Aviation Training (Cabin Crew and

Ground Staff) sector

Training in hardware industry

STRATEGIES

The emphasis shifted from survival to growth and diversification because of change in Aptech’s promoter group

Adopted shorter duration course More effort and investment on Talent development and

culture of growth Customer Relationship Management initiatives Online Testing Services ATTEST was launched ERP system introduced to automate and streamline business

processes

MARKETING STRATEGIESACE

• Owing to the changing environment, the growth rate in this unit was decreasing as the target market(17-21 years old) had started building IT competencies through other channels like formal educations system or through their own making(internet, peer groups). To address this issue, the current course should be also be extended to lower age segment people and the 17-21 years segment should be given exposure to advanced level courses which are not practised in schools.

ARENA

• It enjoyed a first mover advantage when launched 15 years back but of late is facing due to increased level of competition .To increase the market share they need to adopt aggressive marketing strategy with focus on the Unique Selling Point of this. With market forecast predicting doubling of revenue in this sector, Aptech needs to invest heavily and maintain differential advantage to reap the benefits.

Avalon

• Being one of the promising brands and a new brand, it serves a market that has a high growth rate(30%) and hence looks promising for Aptech which means aggressive marketing strategy to be followed to capture as much market share as possible.

MARKETING STRATEGIES (CONTD.)

Npower

• Another promising new brand like Avalon, this SBU addresses a market with a high growth rate (>25%), so it also demands focussed aggressive strategies and large investments to capitalise on the growing market and pose a competition to its competitor.

International

• Since it address a market which has low growth potential and it already enjoys the largest share among its competitors, hence less investment should be done in it instead the resources saved here should be utilized in China as Chinese market has very high growth rate.

China

• This SBU has addresses the market with the highest growth rate (50%) and hence is a promising market for Aptech. To capitalise on this segment, aggressive marketing strategies backed by large investments need to be adopted.

Strengths• Works on franchisee model that gives better ROIC• Consumer based rather than product based by

becoming “a pure education and training company”• First mover in “multimedia and animation training”• Wide Market Base as well as diversification in

business verticals• Customer Relationship management initiatives and

product customization• Vernacular medium of instruction

Weakness• Mostly concentrated in IT sector• Could not capitalize on government school business

Threats• Outdated legislation being an impediment to growth

in International markets• sudden changes in regulatory norms governing the

Education sector at state or national levels• adverse economic and political scenario across 5

continents of operation• business risks of competition, technology

obsolescence, human resource management and currency fluctuation

• Entrance of new players into the market

Opportunity• Capitalize on the strong demographic dividend of

India• Promotion of vocational education & its importance

by the government• Opportunity potential in the animation & media

segment• Avalon & NPower being relatively new & market

CAGR being high, growth potential exists in these segments

• Changing the medium of instruction to Mongolian

INTERNATIONALIZATION

• The main motive for internalization was revenue diversification and reduction in dependence on IT education

• The focus was on entry into non-English speaking markets

• Aptech focussed on BRIC countries, as they were expected to be the superpowers

DECISION MAKING

• Going overseas needs a lot of resources hence market size should be bid enough

• Determination of IT education requirement for IT professionals given the iteration rates and ephemeral nature

• Strategic choice to make (in-house) or buy (outsource) Avalon and Npower

• Studying the impact of Government regulations, competing firms and market trends

MAKE OR BUYAvalon Npower

Type of work Aviation Hardware

Profile required Graduate/Post graduate High School/ Diploma

USP Glamour Learning

Aptech’s Expertise in the field Low, required high end professional courses

Complemented Aptech’s IT education offering

Costs High costs, expected to increase in the coming years Low costs both direct and variable

CompetitionLow at present but due to high

growth, emergence of new players a possibility

Aptech’s competence in the field will lead to high market share

Quality control Needs to be high, a niche product

High quality is maintained as Aptech’s core competency lies in

this field

Decision Buy the product Make the product

RECOMMENDATIONS

• Concentrate on high growth countries like Brazil and Vietnam

• Russia poses problem of negative disposition as well as complex process. Market is smaller in proportion to its GDP, high inflation and is highly regulated; so company should relook at its decision to venture to such countries

• Aptech can move out of Mongolia because of the small market and also because Aptech does not offer courses in Mongolian

THANK YOU