Aqua Logistics Limited 4 Case Study Solution and Analysis
Intro
Aqua Logistics Limited 4 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing details and interaction services. Major business sections 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 reports etc. Aqua Logistics Limited 4 Case Study Help has actually ended up being a specialized info provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and Aqua Logistics Limited 4 Case Study Analysis in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several concerns 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 abilities of the company could be made use of 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 4 Case Study Analysis has specific strengths that can be made use of to reduce the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Aqua Logistics Limited 4 Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position enables the business to think about numerous development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase restraints for the business in implementing its advancement program. The weak points of Aqua Logistics Limited 4 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting Aqua Logistics Limited 4 Case Study Analysis as well, but the development might be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured certain threats to Aqua Logistics Limited 4 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Aqua Logistics Limited 4 Case Study Help 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 rivals can acquire a strong customer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry in addition to existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual total earnings of Aqua Logistics Limited 4 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is quite effective in bring in a large number of customers at a prospective price.
Along with it, the 2nd graph which reveals the annual growth in the Aqua Logistics Limited 4 Case Study Solution total assets, reveals that the business is quite efficient in including value to its possessions through its profits. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Aqua Logistics Limited 4 Case Study Analysis business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Aqua Logistics Limited 4 Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. Along with it, the economic policies connected to the import of books impact the general service at CPM. China's financial conditions are rather favorable for CMP with high GDP development 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 needs to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Aqua Logistics Limited 4 Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Aqua Logistics Limited 4 Case Study Analysis consist of 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.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Aqua Logistics Limited 4 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Aqua Logistics Limited 4 Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate option to prevent the decreasing market development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to first collects the information related to the customer need, the possible markets, the federal government guidelines and the data connected to the competitors provided in the market. After that, the company should choose one possible segment for its preliminary offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' products. The actions above the business should go for the preliminary offering. The business needs to go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
