Aqua Logistics Limited 3 Case Study Solution and Analysis
Intro
Aqua Logistics Limited 3 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing information and interaction services. Major company segments of the business include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports etc. Aqua Logistics Limited 3 Case Study Analysis has actually become a specialized information company and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and Aqua Logistics Limited 3 Case Study Help in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aqua Logistics Limited 3 Case Study Solution has specific strengths that can be made use of to minimize the hazards, get rid of the weakness 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 market i.e. 60 years allows the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position permits the company to consider several development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase restraints for the company in executing its advancement program. The weak points of Aqua Logistics Limited 3 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Aqua Logistics Limited 3 Case Study Solution also, but the development might be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually presented particular dangers to Aqua Logistics Limited 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining 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 industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be determined. However, the general monetary performance of the company could be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Aqua Logistics Limited 3 Case Study Help is growing and the company is rather efficient in bring in a large number of clients at a possible price.
Together with it, the 2nd chart which reveals the yearly development in the Aqua Logistics Limited 3 Case Study Help total possessions, reveals that the business is quite efficient in adding value to its properties through its profits. The development in possessions reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis relating to the distribution of total revenues of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting Aqua Logistics Limited 3 Case Study Solution service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Aqua Logistics Limited 3 Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. However, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Aqua Logistics Limited 3 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Aqua Logistics Limited 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in different market sections, with a significant concentrate on academic publications. CIP functions as a threat 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 marketplace share of Aqua Logistics Limited 3 Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Aqua Logistics Limited 3 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining industry growth. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to first gathers the data connected to the customer demand, the potential markets, the federal government regulations and the information related to the competitors provided in the market. After that, the business should choose one prospective section for its initial offering. It ought to gather research that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the company must opt for the preliminary offering. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
