Aqua Logistics Limited 2 Case Study Solution and Analysis
Introduction
Aqua Logistics Limited 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing information and interaction services. Major organisation sectors of the business include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant products include books, periodicals, online media, exhibits, research study reports and so on. Aqua Logistics Limited 2 Case Study Analysis has actually ended up being a specialized information supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Aqua Logistics Limited 2 Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aqua Logistics Limited 2 Case Study Help has particular strengths that can be utilized to reduce the hazards, overcome the weak point and obtain the chances. 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 items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the company to think about a number of advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which might increase restraints for the business in executing its development program. The weak points of Aqua Logistics Limited 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting Aqua Logistics Limited 2 Case Study Help as well, but the development might be restored by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain threats to Aqua Logistics Limited 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Aqua Logistics Limited 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual overall incomes of Aqua Logistics Limited 2 Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a potential rate.
Together with it, the second graph which shows the yearly development in the Aqua Logistics Limited 2 Case Study Analysis overall possessions, reveals that the business is quite efficient in including worth to its properties through its profits. The development in properties shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis regarding the circulation of total profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting Aqua Logistics Limited 2 Case Study Analysis business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful products etc. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Aqua Logistics Limited 2 Case Study Solution. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Aqua Logistics Limited 2 Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging 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 Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Aqua Logistics Limited 2 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Aqua Logistics Limited 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks second and third in various market sectors, with a major concentrate on educational publications. CIP functions 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 might wean the marketplace share of Aqua Logistics Limited 2 Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value 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 items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an immediate option to prevent the decreasing market growth. Therefore, intro of digital publishing might show to be an instant service with low amount of threat for the company. However, the business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company needs to first gathers the information related to the consumer demand, the potential markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, showing a hazard to the company's long term presence, but the circumstance can be controlled by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
