Aqua Logistics Limited 3 Case Study Solution and Analysis
Aqua Logistics Limited 3 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Aqua Logistics Limited 3 Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change 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 valuable experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Aqua Logistics Limited 3 Case Study Solution has particular strengths that can be made use of to decrease the threats, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Aqua Logistics Limited 3 Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position allows the company to consider several development opportunities without any worry of raising fund externally.
Along with the strengths, the company has particular weaknesses which could increase constraints for the company in implementing its development program. The weak points of Aqua Logistics Limited 3 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing industry is declining since 2008, affecting Aqua Logistics Limited 3 Case Study Analysis as well, but the development might be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has postured particular threats to Aqua Logistics Limited 3 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Aqua Logistics Limited 3 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the risk of losing the client base.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be computed. The overall monetary efficiency of the business could be examined by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Aqua Logistics Limited 3 Case Study Analysis is growing and the business is quite effective in bring in a large number of customers at a potential cost.
In addition to it, the 2nd chart which reveals the yearly growth in the Aqua Logistics Limited 3 Case Study Solution total properties, reveals that the company is quite efficient in adding worth to its possessions through its incomes. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the distribution of total profits of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a potential development to attain its future development goal.
PESTEL analysis might be performed to find out the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Aqua Logistics Limited 3 Case Study Solution business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Aqua Logistics Limited 3 Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books affect the total company at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting Aqua Logistics Limited 3 Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital learning increase the risk of substitution for the market.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Aqua Logistics Limited 3 Case Study Solution include the providers of the paper for publishing 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 purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
CMP operates in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Aqua Logistics Limited 3 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Aqua Logistics Limited 3 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer need, the possible markets, the government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, showing a risk to the company's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.