This report provides a business analysis of Oxford University Press, including an analysis of its internal and external environment using SWOT analysis and Porter's Five Forces Model. It discusses the strengths, weaknesses, opportunities, and threats of the press, as well as the competitive position in the market.
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Business Analysis of Oxford University Press
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK...............................................................................................................................................3 Overview.....................................................................................................................................3 SWOT Analysis..........................................................................................................................3 Porter's Five Forces.....................................................................................................................4 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION In this report the author will cover a brief introduction about Oxford University Press along with an analysis of its internal and external business environment with SWOT analysis. The author will also include an analysis of the competitive position of the Oxford University Press by using Porter's Five Forces Model. TASK Overview Oxford University Press is one of the oldest and largest press in the world. It is the university press of University of Oxford. It is a department of University of Oxford itself and is run and governed by a unit of 15 individuals which are appointed by the vice-chancellor of the University. These individuals are known as the delegates of press. The press is located in the innersuburbofJerichoonWaltonStreet,OxfordoppositeSomervilleCollege.Oxford University Press produces journals of exceptional quality and supply its research to audience and people all around the world. This is efficiently done by closely working withauthors, subscribers and society partners and by providing them with publishing services which help in the research needs of the global audience. SWOT Analysis SWOT analysis is an analytical tool which helps in the analysis of internal and external factors of various organisations, activities, things, tasks etc. SWOT is an abbreviation which stands for; Strengths, Weaknesses, Opportunities, Threats(Teoli and An, 2019). SWOT analysis will further enable Oxford University Press to set standards and benchmarks for the business activities and performance which can be further compared to its competitors. Strengthsï‚·It generates huge amount of revenues by way of publishing and selling various titles and sales. On an average it publishes 6000 titles per year and sells more than 100 million units each year. ï‚·The press analyse the local market and offers its produces to the local market so that people can relate with them on a better basis. ï‚·Ithasadiversifiedrangeofproductswhichincludetextbooks, schoolbooks, dictionaries,children'sbook, journals, musicbooks,
English language teaching material, scholarly monographs etc. ï‚·The company has a strong brand name and a stable financial position. ï‚·The editorial department ensures its publication are made according to the needs of global market. Weaknessesï‚·Most of the revenue is generated from the dictionary segment which means people are not much attracted to other products or other products are not that popular among people(Jordan-Makely, 2019). ï‚·It also publishes premium content which is not affordable by the general public. This reduces the market capture of the company. Opportunitiesï‚·There is an increased share of the company in the market which is emerging because of the contribution it made in increasing its market popularity. ï‚·There is a huge demand of journals, retentionsand acquisitions because of the increased education level. ï‚·Most of the countries are developing and emerging in the field of knowledge. These countries can substantially increase the market of the press as there are going to be a lot of schools which would need publishing of textbooks and schoolbooks. Threatsï‚·As the retail sector has shifted from offline selling to online selling the press can face a loss of revenue as most of its products were sold in the retail stores. ï‚·The world is changing and getting digitised. There is a rapid growth of onlineproductswhichfurtherreducesthesaleofhardcopy publications as most of the material is available online. Porter's Five Forces Porter's Five Forces Model is a tool created byMichael Porter(a Harvard Business School professor). The toolwasbasicallycreatedtohelp organisationsanalysebusiness environment which is affected by the actions of their competitors and also other critical factors which could impact the business environment(Van Pelt, 2010). It has five elements, namely; competitive rivalry, supplier power, buyer power, threat of substitution and threat of new entry.
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Competitive Rivalry: ï‚·Oxford University Press have Pearson PLC, Wiley & Sons Pvt Ltd, Cengage Learning as his top three competitors. These organisations deals in publication segment of the press industry. Almost all these companies have an impressive product portfolio, and a wide range of products to choose from. All these companies also target the same market and give excellent services to their consumers. ï‚·This market is generally not affected by aggressive price cuts, so there are only a fewwaystogaincompetitiveadvantage,namely;effectiveadvertising, innovation in products, exquisite quality, creating brand loyalty etc.(AYDIN, 2017). Supplier Power: ï‚·The suppliers of the press industry has limited power. There are many hundreds of suppliers to this industry. Most of the supply base is representedby small companies which have little power over the consumers. ï‚·The products which are supplied by most of the suppliers won't involve a lot of cost if the company decides to switch its suppliers, but products like printing press, packaging and wrapping machines etc. are supplied by only a few suppliers and switching suppliers will get expensive for the organisation. Buyer Power: ï‚·The number of potential buyers in the publication segment of press or educational industry are high. Buyers of these published products are therefore price makers, with of course some base price provided by the company. ï‚·In a market like this the organisation must create brand loyalty among its buyers to prevent them from switching to other brands like Cambridge and Pearson. Threat of Substitution: ï‚·The buyers are highly likely to substitute to other companies if they are not satisfied with the services and products provided by Oxford University Press. As other companies provide published material with similar context and knowledge
along with similar price range the buyers will evaluate both of the companies and choose the better one. Threat of New Entry: ï‚·Entry in press and educational industry requires huge amount of investments alongwitharenownedbrandimage,therealsoareregulationsandlegal compliancesimposedby governmentwhich makesiteven harderfor new automotive companies to enter the market. ï‚·There is not much of a threat of new entry in the market, the competition Oxford University Press faces is the one from it's rivals and competitors in the industry. CONCLUSION The above report concludes thatOxford University Press has a strong foothold in the market with an overpowering brand image, with it's competitors giving a cut-throat competition the company works efficiently and provide buyers with products enriched with exceptional quality.
REFERENCES Books and Journals AYDIN, O.T., 2017. Assessing the environmental conditions of higher education: in a theoretical approachusingporter’sfiveforcesmodel.JournalofHigherEducationand Science.7(2).pp.378-391. Jordan-Makely, C., 2019. Libraries as bureaucracies: a SWOT analysis.Library Management. Teoli, D. and An, J., 2019. SWOT analysis. Van Pelt, J.C., 2010. A Resource-based Perspective of Porter's Five Forces and Total Quality Management:TheirRoleasDependentsforCompetitiveAdvantage.Journalof Management & Engineering Integration.3(1).p.120.