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



Recomme
ndations
Decision
Making
Internation
alization
SWOT Strategies
Product
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 Aptechs 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 STRATEGIES
ACE
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 BUY
Avalon Npower
Type of work Aviation Hardware
Profile required Graduate/Post graduate High School/ Diploma
USP Glamour Learning
Aptechs Expertise in the field
Low, required high end professional
courses
Complemented Aptechs IT
education offering
Costs
High costs, expected to increase in
the coming years
Low costs both direct and variable
Competition
Low at present but due to high
growth, emergence of new players
a possibility
Aptechs competence in the field
will lead to high market share

Quality control
Needs to be high, a niche product
High quality is maintained as
Aptechs 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