Aqua Logistics Limited 2 Case Study Solution and Analysis
Aqua Logistics Limited 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing information and interaction services. Significant company sectors of the business include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant products include books, periodicals, online media, exhibits, research study reports and so on. Aqua Logistics Limited 2 Case Study Help has actually ended up being a specialized information company and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Aqua Logistics Limited 2 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important 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?
Aqua Logistics Limited 2 Case Study Help has particular strengths that can be made use of to reduce the risks, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Aqua Logistics Limited 2 Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position allows the business to think about a number of development opportunities without any fear of raising fund externally.
In addition to the strengths, the business has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Aqua Logistics Limited 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is declining considering that 2008, affecting Aqua Logistics Limited 2 Case Study Solution as well, however the growth might be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific threats to Aqua Logistics Limited 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Aqua Logistics Limited 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence 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 get a strong consumer base by using particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the risk of losing the customer base.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be calculated. The general financial performance of the company could be examined by utilizing the charts provided in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Aqua Logistics Limited 2 Case Study Analysis is growing and the company is quite efficient in bring in a large number of consumers at a potential price.
Together with it, the second graph which reveals the annual growth in the Aqua Logistics Limited 2 Case Study Analysis total possessions, reveals that the business is quite efficient in adding worth to its possessions through its profits. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis relating to the distribution of overall incomes of the company. Major 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 company could move towards other organisation segments with a possible development to achieve its future advancement objective.
PESTEL analysis could be performed to learn the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of individuals 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. For that reason, it could be said that the overall political forces impacting Aqua Logistics Limited 2 Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Aqua Logistics Limited 2 Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies associated with the import of books affect the overall service at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading useful materials and so on. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Aqua Logistics Limited 2 Case Study Help. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Aqua Logistics Limited 2 Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Aqua Logistics Limited 2 Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Aqua Logistics Limited 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its items in the market.
As the choices are shifting towards digital publishing and the company require an immediate option to prevent the declining industry development. The company could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially collects the data related to the consumer need, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing market is declining because 2008, showing a threat to the business's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.